Early labor market outcomes of university graduates: Does time to degree matter?. (September 2020)

• Record Type: Journal Article
• Authors: Aina, Carmen; Casalone, Giorgia
• Is Part Of: Socio-economic planning sciences. Number 71(2020)
• Publication Date: 2020-09
• Subjects: Time to degree -- Labor market outcomes -- Returns to university; I20 -- J24; Planning -- Periodicals; Economic policy -- Periodicals; Social policy -- Periodicals; Planification -- Périodiques; Politique économique -- Périodiques; Politique sociale -- Périodiques; ECONOMIC PLANNING; SOCIAL PLANNING; DECISION-MAKING; 361
• DOI: 10.1016/j.seps.2020.100822
• Languages: English
• ISSNs: 0038-0121

Abstract

Abstract: Using university administrative and survey data drawn from the AlmaLaurea Consortium, we analyze the effect of time to degree on the early labor market performance of Italian graduates. The empirical strategy allows identifying separately the impact of elapsed time to degree on the transition from university to work and on earnings from other determinants specific to the academic path completed. Findings suggest that delayed graduation reduces the employment probability (0.8% points for each year of delay), and this effect is still persistent five years after graduation. Once employed, graduates not completing their degree within the minimum period are also penalized in their net monthly earnings, even five years after graduation. The most penalized groups are women and graduates in non-scientific fields. Highlights: Delayed graduation has negative effects on early labor market outcomes, i.e. employment probability and monthly earnings. Transition to the labor market slows down for graduates with delay, especially women and non-STEM graduates. Graduates beyond the legal duration have lower earning returns, and the penalization persists over years. Work experiences or Erasmus during university prevent poor employability and improve the monetary returns of graduates. STEM graduates are not affected by elapsed time to degree.