Differential Grading Standards and University Funding: Evidence from Italy

Manuel Bagues, Mauro Sylos Labini and Natalia Zinovyeva
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Mauro Sylos Labini: IMT Institute for Advanced Studies [Lucca]

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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.

Date: 2008-06-01
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Published in CESifo Economic Studies, 2008, 54 (2), pp.149-176. ⟨10.1093/cesifo/ifn011⟩

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Journal Article: Differential Grading Standards and University Funding: Evidence from Italy (2008)
Working Paper: Differential Grading Standards and University Funding: Evidence from Italy (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00279256

DOI: 10.1093/cesifo/ifn011

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