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Students' Mobility and Regional Disparities in Quality and Returns to Education in Italy

  • Patrizia Ordine

    ()

    (University of Calabria)

  • Giuseppe Rose

    (Birbeck College, University of London, UK)

The paper analyzes the characteristics of the supply of higher education in different geographical macroareas using a strategic interaction framework. We investigate the issue of educational quality differentials in a centralized funding system. In the presence of moving costs and asymmetric information on individuals ability, we show that only highability students acquire education and the quality of education is lower in macroareas where the moving costs are higher in the only perfect Bayesian equilibrium consistent with forward induction. Our model predicts that direct subsidies to universities may be ineffective in improving the quality of education in the less developed areas. When regional disparities are not too large, efficiency can be increased by subsidizing student mobility.

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Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 66 (2007)
Issue (Month): 2 (July)
Pages: 149-176

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Handle: RePEc:gde:journl:gde_v66_n2_p149-176
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  15. Patrizia Ordine & Claudio Lupi, 2009. "Family Income and Students' Mobility," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 68(1), pages 1-23, April.
  16. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
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