Education Efficiency Analysis on Sulawesi Provinces

Abstract

Sulawesi Island is one of the big islands and located in middle of Indonesia. Education is an important pillar of development and can be demonstrated by the Human Development Index. In 2015, Sulawesi Island has average Human Development Index about 67.31 that still below the national average of 69.55. The average Human Development Index of Sulawesi Island is also below the average of the Java Human Development Index of 72.3. All the provinces in Sulawesi had make the education become priorities and allocated more budget for education. With more budgets, the government can increase the education quality in Sulawesi. This paper has two objectives. The first objective is to estimate efficiency score of education spending in all provinces in Sulawesi. The second is to analyze the environmental factors that have an impact to increase the efficiency score of education in all provinces in Sulawesi. This study calculates score of education efficiency using Data Envelopment Analysis (DEA) method and using the Tobit for environmental factors analyzing. This study calculates and compares the efficiency score of education spending in 6 provinces in Sulawesi from 2013 to 2015. The DEA method uses the education spending of provinces as Input and uses Net Enrollment Ratio of Junior High School, Net Enrollment Ratio of Senior High School, and Human Development Index (HDI) as Output. While the Tobit uses Number of Junior High School, Number of Senior High School, Number of Junior High School Teacher, and Number of Senior High School Teacher. DEA shows that West Sulawesi with the lowest budget has the highest average of efficiency score. West Sulawesi reaches about 1 efficiency score. With the highest average of education spending, the South Sulawesi has the lowest average of efficiency score with 0.396897. The low efficiency score show that the government didn’t optimal to use the education budget to create the education output. The Tobit shows that number of junior high school has negative marginal effect with -0.0012914 while number of senior high school has positive marginal effect with 0.0009504. The Tobit also shows that both numbers of teachers in junior/high school will give positive marginal effect to increase the education efficiency with 0.0000651 and 0.0000858.