Measuring the labour efficiency in Andalusia (Spain): A DEA approach

Abstract

This paper analyses the labour efficiency in Andalusia, and takes into account labour and demographic characteristics of the Andalusian municipalities. Data Envelopment Analysis (DEA) is the methodology employed. The results obtained indicate differences at the municipal level that depend on the geographical arrangement, with the provincial capitals being the least efficient. An inverse relationship is established between the size of the municipality (in terms of number of inhabitants) and its labour efficiency:  the smaller the size of the municipality, the greater the efficiency. The distance to the capital is also important in establishing the efficiency: the greater the distance to the capital, the greater the efficiency.