This working paper uses the partial frontier approach to analyze schools’ efficiency. We use the indicator of maximum potential output with respect to the extent to which schools’ results could be improved, either maintaining the environmental conditions or by reaching a general long-run improvement. We calculate to what extent resource allocation should be modified to reach these optimal levels, in order to determine the requirements of better management and higher resource endowments and, thus, help schools with students of lower socioeconomic level to achieve maximum results.

In a second stage, we establish which capacities determine the differences in performance. The proposed methodology is applied to a sample of 277 schools in Chile, both private and state schools, as well as private schools that receive public funds. Results show that physical and human resources are more important than management efficiency and the students’ socioeconomic level in order to maximize pupils’ attainment.