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Differential Grading Standards and University Funding: Evidence from Italy

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Author Info
Manuel Bagues
Mauro Sylos Labini
Natalia Zinovyeva

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Abstract

This paper documents that grades vary significantly across Italian public universities and degrees. We provide evidence suggesting that these differences reflect the heterogeneity of grading standards. A straightforward implication of this result is that university funding schemes based on students' academic performance do not necessary favour universities that generate higher value added. We test this for the case of the Italian funds allocation system, which rewards universities according to the number of exams passed by their students. We find that university departments that rank higher according to this indicator actually tend to be significantly worse in terms of their graduates' performance in the labour market.

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Paper provided by FEDEA in its series Working Papers with number 2008-07.

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Date of creation: Feb 2008
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Handle: RePEc:fda:fdaddt:2008-07

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sabot, Richard & Wakeman-Linn, John, 1991. "Grade Inflation and Course Choice," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 159-70, Winter. [Downloadable!] (restricted)
  2. Giorgio Brunello & Lorenzo Cappellari, 2005. "The Labour Market Effects of Alma Mater: Evidence from Italy," IZA Discussion Papers 1562, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Pozzoli, Dario, 2008. "The Transition to Work for Italian University Graduates," Working Papers 08-8, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
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  4. Siegfried, John J & Fels, Rendigs, 1979. "Research on Teaching College Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(3), pages 923-69, September. [Downloadable!] (restricted)
  5. Giorgio Di Pietro, 2006. "Regional labour market conditions and university dropout rates: Evidence from Italy," Regional Studies, Taylor and Francis Journals, vol. 40(6), pages 617-630, August. [Downloadable!] (restricted)
  6. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September. [Downloadable!] (restricted)
  7. Andreu Mas-Colell, 2003. "The European Space of Higher Education: Incentive and Governance Issues," Rivista di Politica Economica, SIPI Spa, vol. 93(6), November-. [Downloadable!]
  8. Jacobs, Bas & van der Ploeg, Frederick, 2005. "Guide to Reform of Higher Education: A European Perspective," CEPR Discussion Papers 5327, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Paul M. Anglin & Ronald Meng, 2000. "Evidence on Grades and Grade Inflation at Ontario's Universities," Canadian Public Policy, University of Toronto Press, vol. 26(3), pages 361-368, September. [Downloadable!] (restricted)
  10. M. De Paola & V. Scoppa, 2007. "Returns to skills, incentives to study and optimal educational standards," Journal of Economics, Springer, vol. 92(3), pages 229-262, December. [Downloadable!] (restricted)
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  1. Manuel Bagues & Mauro Sylos Labini, 2007. "Do Online Labor Market Intermediaries Matter? The Impact of AlmaLaurea on the University-to-Work Transition," NBER Chapters, in: Studies of Labor Market Intermediation National Bureau of Economic Research, Inc. [Downloadable!]
  2. Mauro Sylos Labini & Natalia Zinovyeva, 2009. "Stimulating Graduates' Research-Oriented Careers: Does Academic Research Matter ?," LEM Papers Series 2009/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  3. Robin Cowan & Natalia Zinovyeva, 2009. "Papers or Patents: Channels of University Effect on Regional Innovation," Working Papers 2009-20, FEDEA. [Downloadable!]
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