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Delayed Graduation and Overeducation in Italy: A Test of the Human Capital Model Versus the Screening Hypothesis

Carmen Aina () and Francesco Pastore
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Carmen Aina: Università del Piemonte Orientale

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2020, vol. 152, issue 2, No 6, 533-553

Abstract: Abstract Exploiting the human capital versus screening hypothesis frameworks, this paper studies the link between delayed graduation and overeducation, and their effect on wages, by using the ISFOL-Plus data. The evidence lines towards predictions based on the signalling model. However, as to the determinants of overeducation the coefficient of delayed graduation is significant only for delays of 3 years or more and also controlling for the entire set of covariates. This suggests that delay conveys a signal of low skill.

Keywords: Delayed graduation; Overeducation; Human capital theory; Screening hypothesis; Earnings equations (search for similar items in EconPapers)
JEL-codes: C25 C26 C33 I2 J13 J24 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11205-020-02446-0

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