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The Signal and the Noise: The Impact of the Bologna Process on Swiss Graduates’ Monetary Returns to Higher Education

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  • David Glauser

    (Department of Sociology of Education, University of Bern, Switzerland)

  • Christoph Zangger

    (Institute of Sociology, University of Zurich, Switzerland)

  • Rolf Becker

    (Department of Sociology of Education, University of Bern, Switzerland)

Abstract

Using longitudinal data on university leaver cohorts in the period from 2006 to 2016, we investigate the impact of the Bologna reform on Swiss graduates’ returns to higher education. Drawing on the job market signaling model, we expect lower returns for graduates who enter the labor market with a bachelor’s degree. Moreover, we expect that the initial wage difference between bachelor and master graduates will become less volatile over time, since employers constantly update their beliefs about graduates’ employability. Controlling for selection into employment and a number of different signals sent by the graduates, we find a persistent advantage of a master’s over a bachelor’s degree. The new degrees, and especially a bachelor’s degree, did indeed serve as a noisy signal about graduates’ productivity in the first years of the Bologna process.

Suggested Citation

  • David Glauser & Christoph Zangger & Rolf Becker, 2019. "The Signal and the Noise: The Impact of the Bologna Process on Swiss Graduates’ Monetary Returns to Higher Education," Social Inclusion, Cogitatio Press, vol. 7(3), pages 154-176.
    • Handle: RePEc:cog:socinc:v7:y:2019:i:3:p:154-176
    DOI: 10.17645/si.v7i3.2100
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    References listed on IDEAS

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    3. David J. Deming & Noam Yuchtman & Amira Abulafi & Claudia Goldin & Lawrence F. Katz, 2016. "The Value of Postsecondary Credentials in the Labor Market: An Experimental Study," American Economic Review, American Economic Association, vol. 106(3), pages 778-806, March.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
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    Cited by:

    1. Irene Kriesi & Juerg Schweri, 2019. "Types of Education, Achievement and Labour Market Integration over the Life Course," Social Inclusion, Cogitatio Press, vol. 7(3), pages 58-64.

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