Application of the DEA Double Bootstrap to Analyze Efficiency in Galician Sheltered Workshops

Maria-Celia Penabad, José Manuel Maside-Sanfiz, Juan Torrelles Manent and A Iglesias-Casal
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José Manuel Maside-Sanfiz: Faculty of Economics and Business, University of Santiago de Compostela, 15782 Santiago de Compostela, Spain
Juan Torrelles Manent: Faculty of Economics and Business, University of Santiago de Compostela, 15782 Santiago de Compostela, Spain

Sustainability, 2020, vol. 12, issue 16, 1-21

Abstract: Sheltered workshops (SW), as social enterprises, need to be efficient and maintain a balance between social aspects and economic prosperity. An important part of research on the subject has been focused on measuring the economic value created by these entities. In this study, we analyzed performance of SWs in Galicia (Spain), from the point of view of efficiency, combining social and economic aspects and investigating its key determinants. Using panel data from 609 entities from 2008 to 2017, we followed Simar and Wilson’s two-stage approach (2007). Specifically, we used data envelopment analysis (DEA) at the first stage to estimate efficiency scores and then used truncated regression estimation with double-bootstrap to test the significance of explanatory variables. Our results show that SWs have high levels of performance, higher in economic than in social terms, and we found that several factors, such as size and age, positively influence total, economic and social efficiency individually. We also found a positive, significant relationship between social efficiency and economic profitability.

Keywords: social enterprises; sheltered workshops; performance evaluation; data envelopment analysis; efficiency determinants; two-stage bootstrap Simar and Wilson procedure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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