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

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  • Carmen Aina

    (Università del Piemonte Orientale
    Global Labor Organization)

  • Francesco Pastore

    (Global Labor Organization
    Università della Campania Luigi Vanvitelli
    IZA (Institute of Labor Economics) of Bonn)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:soinre:v:152:y:2020:i:2:d:10.1007_s11205-020-02446-0
    DOI: 10.1007/s11205-020-02446-0
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    3. Esposito, Piero & Scicchitano, Sergio, 2022. "Educational mismatch and labour market transitions in Italy: Is there an unemployment trap?," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 138-155.
    4. Piero Esposito & Sergio Scicchitano, 2023. "Drivers of skill mismatch among Italian graduates: the role of personality traits," Applied Economics, Taylor & Francis Journals, vol. 55(40), pages 4642-4663, August.
    5. 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).
    6. Rattini, Veronica, 2023. "The effects of financial aid on graduation and labor market outcomes: New evidence from matched education-labor data," Economics of Education Review, Elsevier, vol. 96(C).
    7. Granato, Silvia & Havari, Enkelejda & Mazzarella, Gianluca & Schnepf, Sylke V., 2021. "Study Abroad Programmes and Students' Academic Performance: Evidence from Erasmus Applications," IZA Discussion Papers 14651, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Delayed graduation; Overeducation; Human capital theory; Screening hypothesis; Earnings equations;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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