Differential Grading Standards and University Funding: Evidence from Italy

FEDEA Working Paper No. 2008-07

23 Pages Posted: 12 Feb 2008

See all articles by Manuel Bagues

Manuel Bagues

Aalto University - Department of Economics

Mauro Sylos Labini

IMT Institute for Advanced Studies

Natalia Zinovyeva

Aalto University

Multiple version iconThere are 2 versions of this paper

Date Written: January 31, 2008

Abstract

This paper documents that grades vary significantly across Italian 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.

Keywords: Higher Education, Grading Standards

JEL Classification: I2, J31, J64

Suggested Citation

Bagues, Manuel F. and Sylos Labini, Mauro and Zinovyeva, Natalia, Differential Grading Standards and University Funding: Evidence from Italy (January 31, 2008). FEDEA Working Paper No. 2008-07. Available at SSRN: https://ssrn.com/abstract=1089653 or http://dx.doi.org/10.2139/ssrn.1089653

Manuel F. Bagues (Contact Author)

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

HOME PAGE: http://www.manuelbagues.com

Mauro Sylos Labini

IMT Institute for Advanced Studies ( email )

Complesso San Micheletto
Lucca, 55100
Italy

Natalia Zinovyeva

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland

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