Article thumbnail

Are easy grading practices induced by low demand? Evidence from Italy

By De Paola Maria

Abstract

In this paper we investigate whether grades are used by educational institutions as a competition variable to attract and retain students. Using a sample of almost 26,000 students enrolled at an Italian University, we document that grades vary significantly across degrees. After controlling for students’ characteristics, class-size, classmates’ quality and degree fixed effects, it emerges that students obtain better grades and are less likely to drop-out when their degree course experiences an excess of supply. We adopt an instrumental variable strategy to account for endogeneity problems and instrument the excess of supply by using the total number of universities offering each degree course. Our IV estimates confirm that the teaching staff on degree course facing low demand tend to set lower academic standards with the result that their students obtain better grades and have a lower probability of dropping out than they might otherwise.grades, higher education, grading standards

OAI identifier:

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles

Citations

  1. (2007). A signalling theory of grade inflation”,
  2. (2008). Differential Grading Standards and University Funding: Evidence from Italy”, Working Papers FEDEA.
  3. (2000). Evidence on Grades and Grade Inflation at Ontario’s Universities”,
  4. (2003). Instrumental Variables And The Search For Identification: From Supply And Demand To Natural Experiments”, MIT Working Paper N.
  5. (2001). Performance accademica e scelta della facolta' universitaria: aspetti teorici e evidenza empirica”, Rivista di Politica Economica,
  6. (2007). Returns to skills, incentives to study and optimal educational standards”,
  7. (2006). The economics of education”,.
  8. (1996). The impact of curriculum-based external examinations on school priorities and student learning”,