The effect of competition on the efficiency of secondary schools in England

In this paper we calculate the technical efficiencies, based upon multiple outputs – school exam performance and attendance rates – of all secondary schools in England over the period 1993–1998. We then estimate models to examine the determinants of efficiency in a particular year, and the determinants of the change in efficiency over the period. Our results suggest that the greater the degree of competition between schools the more efficient they are. The strength of this effect has also increased over time which is consistent with the evolution of the quasi-market in secondary education. Competition is also found to be an important determinant of the change in efficiency over time. There is, however, some evidence of conditional convergence between schools.