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On the Causal Effects of Selective Admission Policies on Students’ Performances. Evidence from a Quasi-experiment in a Large Italian University

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We present a dynamic OLG model of educational signaling, inequality and mobility with missing credit markets. Agents are characterized by two sources of unobserved heterogeneity: ability and parental income, consistent with empirical evidence on returns to schooling. Both quantity and quality of human capital evolve endogenously. The model generates a Kuznets inverted-U pattern in skill premia similar to historical US and UK experience. In the first (resp. later) phase the skill premium rises (falls), social returns to education exceed (falls below) private returns: under-investment owing to financial imperfections dominate (are dominated by) over-investment owing to signaling distortions. There always exist Pareto-improving policy interventions reallocating education between poor and rich children. JEL Classification: Tertiary education, Selective test based admission policies; students’ performances; peer effects; quasiexperiment

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  • Vincenzo Carrieri & Marcello D'Amato & Roberto Zotti, 2014. "On the Causal Effects of Selective Admission Policies on Students’ Performances. Evidence from a Quasi-experiment in a Large Italian University," CSEF Working Papers 381, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:381
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    2. Contini,Dalit & Ricciardi,Riccardo & Romito,Marco & Salza,Guido & Zotti,Roberto, 2020. "Improving university dropout and student careers. What room for institutional action?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202004, University of Turin.
    3. Contini, Dalit & Salza, Guido, 2020. "Too few university graduates. Inclusiveness and effectiveness of the Italian higher education system," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    4. Minaya, Veronica & Agasisti, Tommaso & Bratti, Massimiliano, 2022. "When need meets merit: The effect of increasing merit requirements in need-based student aid," European Economic Review, Elsevier, vol. 146(C).
    5. Carmen Aina & Francesco Pastore, 2020. "Delayed Graduation and Overeducation in Italy: A Test of the Human Capital Model Versus the Screening Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(2), pages 533-553, November.
    6. Lucio Masserini & Matilde Bini & Monica Pratesi, 2017. "Effectiveness of non-selective evaluation test scores for predicting first-year performance in university career: a zero-inflated beta regression approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 693-708, March.
    7. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2018. "The economics of university dropouts and delayed graduation: a survey," GLO Discussion Paper Series 189, Global Labor Organization (GLO).
    8. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2022. "The determinants of university dropout: A review of the socio-economic literature," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    I21; I28; C21;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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