IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Delayed Graduation and Overeducation: A Test of the Human Capital Model versus the Screening Hypothesis

  • Aina, Carmen

    ()

    (University of Piemonte Orientale)

  • Pastore, Francesco

    ()

    (University of Naples II)

The academic circles are devoting a growing interest to delayed graduation and overeducation, but none has analyzed the joint consequences of these two phenomena. Thus, this paper studies the link between graduation not within the minimum period and overeducation, and the effects of these variables on wages, using the ISFOL-Plus data. According to the human capital model, delayed graduation increases a student' human capital and should, therefore, reduce her probability of being overeducated, while increasing her wage. According to the screening hypothesis, instead, delayed graduation signals low skills and therefore increases the chances of being overeducated, while bearing a wage penalty. The evidence lines towards predictions based on the screening hypothesis. First, delayed graduation increases the chances of overeducation. In addition, the direct wage penalty associated to delayed graduation equals 7% of the median wage. However, being a determinant of overeducation, it also indirectly contributes to the penalty of 19.8% of the median wage associated to overeducation. These effects are sizeable, considering the very low returns to higher education in Italy reported in previous studies.

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://ftp.iza.org/dp6413.pdf
Download Restriction: no

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6413.

as
in new window

Length: 30 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6413
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:


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. Carmen Aina & Lorenzo Cappellari & Marco Francesconi, 2010. "Student Performance may not Improve when Universities are Choosier," CESifo Working Paper Series 3264, CESifo Group Munich.
  2. Carmen Aina, 2010. "The Determinants of Success and Failure of Italian University Students. Evidence from administrative data," Working Papers 131, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  3. Daniele Checchi & Luca Flabbi, 2013. "Intergenerational Mobility and Schooling Decisions in Germany and Italy: The Impact of Secondary School Tracks," Rivista di Politica Economica, SIPI Spa, issue 3, pages 7-57, July-Sept.
  4. Lorenzo Cappellari, 2004. "The Effects Of High School Choices On Academic Performance And Early Labour Market Outcomes," Royal Economic Society Annual Conference 2004 92, Royal Economic Society.
  5. Giorgia Casalone & Carmen Aina, 2011. "Does time-to-degree matter? The effect of delayed graduation on employment and wages," Working Papers 38, AlmaLaurea Inter-University Consortium.
  6. 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.
  7. Monks, James, 1997. "The impact of college timing on earnings," Economics of Education Review, Elsevier, vol. 16(4), pages 419-423, October.
  8. 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).
  9. John Bound & Michael F. Lovenheim & Sarah Turner, 2010. "Increasing Time to Baccalaureate Degree in the United States," NBER Working Papers 15892, National Bureau of Economic Research, Inc.
  10. Sascha O. Becker, 2006. "Introducing Time-to-Educate in a Job-Search Model," Bulletin of Economic Research, Wiley Blackwell, vol. 58(1), pages 61-72, 01.
  11. Francesco Pastore & Lia Ambrosio, 2003. "XVIII AIEL Conference," Economics Bulletin, AccessEcon, vol. 28(25), pages A25.
  12. repec:ebl:ecbull:v:28:y:2003:i:25:p:a25 is not listed on IDEAS
  13. Carmen Aina & Eliana Baici & Giorgia Casalone, 2011. "Time to degree: students' abilities, university characteristics or something else? Evidence from Italy," Education Economics, Taylor & Francis Journals, vol. 19(3), pages 311-325.
  14. Carmen Aina, 2010. "The Determinants of Educational Attainment, University Drop-out and Time-to-Degree. A focus on Italy," Working Papers 132, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  15. Häkkinen, Iida & Uusitalo, Roope, 2003. "The Effect of a Student Aid Reform on Graduation: A Duration Analysis," Working Paper Series 2003:8, Uppsala University, Department of Economics.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6413. 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: (Mark Fallak)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.