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Differential Grading Standards and University Funding: Evidence from Italy

Author

Listed:
  • Manuel Bagues

    (UC3M - Universidad Carlos III de Madrid [Madrid])

  • Mauro Sylos Labini

    (IMT Institute for Advanced Studies [Lucca])

  • Natalia Zinovyeva

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, FEDEA - FEDEA - FEDEA)

Abstract
This article documents that grades vary significantly across Italian public universities and degrees. We provide evidence suggesting that these differences reflect the heterogeneity of grading standards. A straightforward implication of this result is that university funding schemes based on students' academic performance do not necessary favour universities that generate higher value added. We test this for the case of the Italian funds allocation system, which rewards universities according to the number of exams passed by their students. We find that university departments that rank higher according to this indicator actually tend to be significantly worse in terms of their graduates' performance in the labour market.

Suggested Citation

  • Manuel Bagues & Mauro Sylos Labini & Natalia Zinovyeva, 2008. "Differential Grading Standards and University Funding: Evidence from Italy," Post-Print hal-00279256, HAL.
    • Handle: RePEc:hal:journl:hal-00279256
    DOI: 10.1093/cesifo/ifn011
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    References listed on IDEAS

    as
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    8. Donald G. Freeman, 1999. "Grade Divergence as a Market Outcome," The Journal of Economic Education, Taylor & Francis Journals, vol. 30(4), pages 344-351, December.
    9. Paul M. Anglin & Ronald Meng, 2000. "Evidence on Grades and Grade Inflation at Ontario's Universities," Canadian Public Policy, University of Toronto Press, vol. 26(3), pages 361-368, September.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mauro Sylos Labini & Natalia Zinovyeva, 2011. "Stimulating graduates' research-oriented careers: does academic research matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(1), pages 337-365, February.
    2. Bosio, Giulio & Leonardi, Marco, 2011. "The Impact of Bologna Process on the Graduate Labour Market: Demand and Supply," IZA Discussion Papers 5789, Institute of Labor Economics (IZA).
    3. Чернова Е. Г. & Ахобадзе Т. Д. & Малова А. С. & Салтан А. А., 2017. "Модели Финансирования Высшего Образования И Эффективность Деятельности Университетов Эмпирическое Исследование Европейского Опыта И Отечественная Практика," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 3, pages 37-82.
    4. Ehlers, Tim & Schwager, Robert, 2012. "Honest Grading, Grade Inflation and Reputation," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62051, Verein für Socialpolitik / German Economic Association.
    5. Triventi, Moris, 2014. "Does working during higher education affect students’ academic progression?," Economics of Education Review, Elsevier, vol. 41(C), pages 1-13.
    6. Stijn Kelchtermans, 2008. "Regulation of Program Supply in Higher Education: Lessons from a Funding System Reform in Flanders," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 204-228, June.
    7. Maria De Paola, 2011. "Easy grading practices and supply–demand factors: evidence from Italy," Empirical Economics, Springer, vol. 41(2), pages 227-246, October.
    8. Manuel F. Bagues & Mauro Sylos Labini, 2009. "Do Online Labor Market Intermediaries Matter? The Impact of "AlmaLaurea" on the University-to-Work Transition," NBER Chapters, in: Studies of Labor Market Intermediation, pages 127-154, National Bureau of Economic Research, Inc.
    9. Frederick van der Ploeg, 2008. "Towards Evidence-based Reform of European Universities," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 99-120, June.
    10. Bauer, Thomas K. & Grave, Barbara S., 2011. "Performance-related Funding of Universities: Does More Competition Lead to Grade Inflation?," IZA Discussion Papers 6073, Institute of Labor Economics (IZA).
    11. Maria Mercedes Teijeiro Álvarez (ed.), 2013. "Investigaciones de Economía de la Educación," E-books Investigaciones de Economía de la Educación, Asociación de Economía de la Educación, edition 1, volume 8, number 08, August.
    12. Carmen Aina & Massimiliano Bratti & Enrico Lippo, 2021. "Ranking high schools using university student performance in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 293-321, April.
    13. Cowan, Robin & Zinovyeva, Natalia, 2013. "University effects on regional innovation," Research Policy, Elsevier, vol. 42(3), pages 788-800.
    14. Laura Chies & Grazia Graziosi & Francesco Pauli, 2019. "The Impact of the Bologna Process on Graduation: New Evidence from Italy," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(2), pages 203-218, March.
    15. Popov, Sergey V. & Bernhardt, Dan, 2010. "University Competition, Grading Standards and Grade Inflation," MPRA Paper 26461, University Library of Munich, Germany.
    16. Møen, Jarle & Tjelta, Martin, 2010. "Grading standards, student ability and errors in college admission," Discussion Papers 2010/5, Norwegian School of Economics, Department of Business and Management Science.
    17. repec:zbw:rwirep:0288 is not listed on IDEAS
    18. Nordin, Martin & Heckley, Gawain & Gerdtham, Ulf, 2019. "The impact of grade inflation on higher education enrolment and earnings," Economics of Education Review, Elsevier, vol. 73(C).
    19. Samuel A Swift & Don A Moore & Zachariah S Sharek & Francesca Gino, 2013. "Inflated Applicants: Attribution Errors in Performance Evaluation by Professionals," PLOS ONE, Public Library of Science, vol. 8(7), pages 1-15, July.
    20. repec:got:cegedp:143 is not listed on IDEAS
    21. Gerhard Kempkes & Carsten Pohl, 2008. "Do Institutions Matter for University Cost Efficiency? Evidence from Germany," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 177-203.
    22. 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.
    23. Ehlers, Tim & Schwager, Robert, 2012. "Honest grading, grade inflation and reputation," University of Göttingen Working Papers in Economics 143, University of Goettingen, Department of Economics.
    24. Thomas K. Bauer & Barbara S. Grave, 2011. "Performance-related Funding of Universities – Does more Competition Lead to Grade Inflation?," Ruhr Economic Papers 0288, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    25. Gabriele Lombardi & Giulio Ghellini, 2019. "Linking University Harshness and Students’ Choices: Sociodemographic Differences based on Italian Universities’ Characteristics," Department of Economics University of Siena 805, Department of Economics, University of Siena.

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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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