Study on the efficiency and effectiveness of public spending on tertiary education : third report (second draft)

Public tertiary education systems in the EU Member States are studied by comparing used resources with education and research outputs and outcomes. Efficiency in public tertiary education systems across EU countries plus Japan and the US is assessed with semi-parametric methods and stochastic frontier analysis. A core group of efficient countries is identified. A good quality secondary system, output-based funding rules, institutions' independent evaluation, and staff policy autonomy are positively related to efficiency. Moreover, evidence is provided that public spending on tertiary education is more effective in what concerns labour productivity growth and employability when it is coupled with efficiency.