Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does time-to-degree matter? The effect of delayed graduation on employment and wages

Contents:

Author Info

  • Giorgia Casalone

    ()
    (University of Piemonte Orientale A. Avogadro)

  • Carmen Aina

    (University of Piemonte Orientale A. Avogadro)

Abstract

We use a sample of Italian graduates drawn from the Consorzio AlmaLaurea to study whether the time taken to attain a degree matters for employment and earnings after one, three and five years from graduation. The relevance of this topic arises from the observation that Italian tertiary education system is characterized by an average time to undergraduate degree that is longer than the prescribed period. In addition, this issue is important also because delay in college completion entails a waste of resources both at individual and at collective level, and deprives the economics system of new and up-to-date competencies, as graduates enter the labour market with partially obsolete skills. Our estimates highlight that the probability of finding a job is negatively related to the time taken to graduate only if such delay is greater than three years. Graduates with previous work experiences, then, take on average two months less to be employed and receive higher wages. We also find evidence that students who obtain a degree beyond the minimum period suffer a wage penalty not while entering the labour market, but in the subsequent years (especially 5 years after graduation). This finding suggests that time-to-degree along with work experiences are good proxies for employers to discriminate between the ability of graduates.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www2.almalaurea.it/universita/pubblicazioni/wp/pdf/wp38.pdf
File Function: First version, 2011
Download Restriction: no

Bibliographic Info

Paper provided by AlmaLaurea Inter-University Consortium in its series Working Papers with number 38.

as in new window
Length: 21
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:laa:wpaper:38

Contact details of provider:
Web page: http://www.almalaurea.it

Related research

Keywords: time-to-degree; tertiary education; wage differentials;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Brunello, Giorgio & Winter-Ebmer, Rudolf, 2002. "Why Do Students Expect to Stay Longer in College? Evidence from Europe," IZA Discussion Papers 658, Institute for the Study of Labor (IZA).
  2. Matthias Parey & Fabian Waldinger, 2011. "Studying Abroad and the Effect on International Labour Market Mobility: Evidence from the Introduction of ERASMUS," Economic Journal, Royal Economic Society, vol. 121(551), pages 194-222, March.
  3. Buonanno, Paolo & Pozzoli, Dario, 2008. "Early Labour Market Returns to College Subjects," Working Papers 08-10, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. Garibaldi, Pietro & Giavazzi, Francesco & Ichino, Andrea & Rettore, Enrico, 2007. "College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities," CEPR Discussion Papers 6106, C.E.P.R. Discussion Papers.
  5. Brodaty, Thomas & Gary-Bobo, Robert J. & Prieto, Ana, 2008. "Does Speed Signal Ability? The Impact of Grade Repetitions on Employment and Wages," CEPR Discussion Papers 6832, C.E.P.R. Discussion Papers.
  6. Häkkinen, Iida, 2004. "Working while enrolled in a university: Does it pay?," Working Paper Series 2004:1, Uppsala University, Department of Economics.
  7. John Bound & Michael F. Lovenheim & Sarah Turner, 2012. "Increasing Time to Baccalaureate Degree in the United States," Education Finance and Policy, MIT Press, vol. 7(4), pages 375-424, September.
  8. Hessel Oosterbeek & Dinand Webbink, 2011. "Does Studying Abroad Induce a Brain Drain?," Economica, London School of Economics and Political Science, vol. 78(310), pages 347-366, 04.
  9. Linda Datcher Loury, 1997. "The gender gap among college-educated workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(4), pages 580-593, July.
  10. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Aina, Carmen & Pastore, Francesco, 2012. "Delayed Graduation and Overeducation: A Test of the Human Capital Model versus the Screening Hypothesis," IZA Discussion Papers 6413, Institute for the Study of Labor (IZA).
  2. Caroleo, Floro Ernesto & Pastore, Francesco, 2011. "Talking about the Pigou Paradox: Socio-Educational Background and Educational Outcomes of AlmaLaurea," IZA Discussion Papers 6021, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:laa:wpaper:38. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.