IDEAS home Printed from https://ideas.repec.org/p/anc/wpaper/419.html
   My bibliography  Save this paper

Increasing Graduation and Calling for More Autonomy in Higher Education: Is It a Good Thing? A Theoretical Model

Author

Listed:
  • Stefano STAFFOLANI

    (Università Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Maria Cristina RECCHIONI

    (Università Politecnica delle Marche, Dipartimento di Management)

Abstract

This paper presents a theoretical model of enrollment decisions made by high school graduates, under the assumption that their choices are strongly influenced by the educational standard(s), roughly de ned as what students are expected to have learned by the end of the course. Higher standards reduce the probability of graduation but increase the accumulation of human capital and future earnings. The policy maker decides whether standards are set equally for all universities (centralization) or autonomously by each university (decentralization). In the centralized setting, the model establishes relationships among the standards that maximize di erent objectives: graduation, enrollment, and human capital. Speci cally, the standard that maximizes graduation is lower than the one that maximizes enrollment, which, in turn, is lower than the one that maximizes human capital. The decentralized setting may perform worse than the centralized one in terms of these three objectives if moving costs exist, while it always performs worse in terms of inter-generational mobility in education.

Suggested Citation

  • Stefano STAFFOLANI & Maria Cristina RECCHIONI, 2016. "Increasing Graduation and Calling for More Autonomy in Higher Education: Is It a Good Thing? A Theoretical Model," Working Papers 419, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:419
    as

    Download full text from publisher

    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/419.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joniada Milla, 2012. "University Quality and Labour Market Outcomes of Canadian Youth," Working Papers 1212, University of Guelph, Department of Economics and Finance.
    2. Oliver Himmler & Robert Schwager, 2013. "Double Standards in Educational Standards – Do Schools with a Disadvantaged Student Body Grade More Leniently?," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 166-189, May.
    3. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does It Pay to Attend a Prestigious University?," IZA Discussion Papers 848, Institute of Labor Economics (IZA).
    4. Lena Lindahl & Håkan Regnér, 2005. "College Choice and Subsequent Earnings: Results Using Swedish Sibling Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 437-457, September.
    5. Giorgio Brunello & Lorenzo Rocco, 2008. "Educational Standards in Private and Public Schools," Economic Journal, Royal Economic Society, vol. 118(533), pages 1866-1887, November.
    6. Massimiliano BRATTI & Chiara BROCCOLINI & Stefano STAFFOLANI, 2007. "Mass Tertiary Education, Higher Education Standard and University Reform: A Theoretical Analysis," Working Papers 277, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. John Bishop & Ludger Wossmann, 2004. "Institutional Effects in a Simple Model of Educational Production," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 17-38.
    8. Schwager, Robert, 2013. "Majority Vote on Educational Standards," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79971, Verein für Socialpolitik / German Economic Association.
    9. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    10. Denzler, Stefan & Wolter, Stefan C., 2011. "Too Far to Go? Does Distance Determine Study Choices?," IZA Discussion Papers 5712, Institute of Labor Economics (IZA).
    11. Altonji, Joseph G, 1993. "The Demand for and Return to Education When Education Outcomes Are Uncertain," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 48-83, January.
    12. Cappellari, Lorenzo & Lucifora, Claudio, 2009. "The "Bologna Process" and college enrollment decisions," Labour Economics, Elsevier, vol. 16(6), pages 638-647, December.
    13. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
    14. Betts, Julian R, 1998. "The Impact of Educational Standards on the Level and Distribution of Earnings," American Economic Review, American Economic Association, vol. 88(1), pages 266-275, March.
    15. Manuel Bagues & Mauro Sylos Labini & Natalia Zinovyeva, 2008. "Differential Grading Standards and University Funding: Evidence from Italy," CESifo Economic Studies, CESifo, vol. 54(2), pages 149-176.
    16. Veruska Oppedisano, 2009. "Open University Admission Policies and Drop Out Rates in Europe," Working Papers 200944, Geary Institute, University College Dublin.
    17. Brad J. Hershbein, 2013. "Worker Signals among New College Graduates: The Role of Selectivity and GPA," Upjohn Working Papers 13-190, W.E. Upjohn Institute for Employment Research.
    18. Oliver Himmler & Robert Schwager, 2013. "Double Standards in Educational Standards – Do Schools with a Disadvantaged Student Body Grade More Leniently?," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 166-189, May.
    19. Gonzalo Olcina Vauteren & Luisa Escriche, 2006. "Education And Family Income: Can Poor Children Signal Their Talent?," Working Papers. Serie AD 2006-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    20. Costrell, Robert M., 1997. "Can centralized educational standards raise welfare?," Journal of Public Economics, Elsevier, vol. 65(3), pages 271-293, September.
    21. NAKAMURO Makiko & INUI Tomohiko, 2013. "The Returns to College Quality in Japan: Does Your College Choice Affect Your Earnings?," ESRI Discussion paper series 306, Economic and Social Research Institute (ESRI).
    22. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-971, September.
    23. Haifeng Zhang & Yang Wu & Xianguo Yao, 2013. "Does attending a key school have a quality premium? A regression discontinuity analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 20(18), pages 1630-1635, December.
    24. Bishop, J., 1997. "The Effect of national Standards and Curriculum-Based Exams on Achievement," Papers 97-01, Cornell - Center for Advanced Human Resource Studies.
    25. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
    26. Bishop, John H, 1997. "The Effect of National Standards and Curriculum-Based Exams on Achievement," American Economic Review, American Economic Association, vol. 87(2), pages 260-264, May.
    27. Cantillon, B. & De Ridder, A. & Vanhaecht, E. & Verbist, G., 2011. "(Un)desirable effects of output funding for Flemish universities," Economics of Education Review, Elsevier, vol. 30(5), pages 1059-1072, October.
    28. 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.
    29. Robert Schwager, 2013. "Majority Vote on Educational Standards," GEMF Working Papers 2013-11, GEMF, Faculty of Economics, University of Coimbra.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Tampieri, 2016. "Social background effects on school and job opportunities," Education Economics, Taylor & Francis Journals, vol. 24(5), pages 496-510, September.
    2. John Bishop & Ludger Wossmann, 2004. "Institutional Effects in a Simple Model of Educational Production," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 17-38.
    3. Thomas Fuchs & Ludger Wößmann, 2008. "What accounts for international differences in student prformance? A re-examination using PISA data," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 209-240, Springer.
    4. Ludger Wößmann, 2003. "Schooling Resources, Educational Institutions and Student Performance: the International Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 117-170, May.
    5. Felix Büchel & Hendrik Jürges & Kerstin Schneider, 2003. "Die Auswirkungen zentraler Abschlussprüfungen auf die Schulleistung: quasi-experimentelle Befunde aus der deutschen TIMSS-Stichprobe," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 238-251.
    6. Schwerdt, Guido & Woessmann, Ludger, 2017. "The information value of central school exams," Economics of Education Review, Elsevier, vol. 56(C), pages 65-79.
    7. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
    8. De Witte, Kristof & Geys, Benny & Solondz, Catharina, 2014. "Public expenditures, educational outcomes and grade inflation: Theory and evidence from a policy intervention in the Netherlands," Economics of Education Review, Elsevier, vol. 40(C), pages 152-166.
    9. Volker Meier & Ioana Cosmina Schiopu, 2015. "Why Academic Quality in Higher Education Declines," CESifo Working Paper Series 5480, CESifo.
    10. Schwerdt, Guido & Woessmann, Ludger, 2017. "The information value of central school exams," Economics of Education Review, Elsevier, vol. 56(C), pages 65-79.
    11. Oliver Himmler & Robert Schwager, 2013. "Double Standards in Educational Standards – Do Schools with a Disadvantaged Student Body Grade More Leniently?," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 166-189, May.
    12. Meier, Volker & Schiopu, Ioana, 2020. "Enrollment expansion and quality differentiation across higher education systems," Economic Modelling, Elsevier, vol. 90(C), pages 43-53.
    13. Ludger Wößmann, 2006. "Bildungspolitische Lehren aus den internationalen Schülertests: Wettbewerb, Autonomie und externe Leistungsüberprüfung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 417-444, August.
    14. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    15. Giorgio Brunello & Lorenzo Rocco, 2008. "Educational Standards in Private and Public Schools," Economic Journal, Royal Economic Society, vol. 118(533), pages 1866-1887, November.
    16. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
    17. Georg Graetz, 2021. "On the interpretation of diploma wage effects estimated by regression discontinuity designs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 228-258, February.
    18. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," Umeå Economic Studies 692, Umeå University, Department of Economics.
    19. Robert Schwager, 2018. "Majority Vote on Educational Standards," CESifo Working Paper Series 6845, CESifo.
    20. Leschnig, Lisa & Schwerdt, Guido & Zigova, Katarina, 2021. "Central exams and adult skills: Evidence from PIAAC," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).

    More about this item

    Keywords

    Education; University; Standards; Human Capital; Inequality; Regulation of Educational System;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:419. 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: . General contact details of provider: https://edirc.repec.org/data/deancit.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maurizio Mariotti (email available below). General contact details of provider: https://edirc.repec.org/data/deancit.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.