Differences in standards of academic achievement and financing of universities: The Italian experience

Abstract

Average grades of alumni of different Italian state universities vary significantly. Remarkably, graduates of universities with higher average grade do not perform better at the job market, moreover they sometimes lose to graduates of universities with a lower average grade. The difference in final grades reflect in particular difference in standards of academic achievement used by different universities. Consequently, schemes of university financing based on students’ grades do not ensure that universities providing better quality education receive preferential support. This conclusion is pertinent for the Italian system, under which the distribution of budget funds among universities depends on the number of exams successfully passed by students.