The Academic and Labor Market Returns of University Professors

43 Pages Posted: 25 Jan 2014

See all articles by Michela Braga

Michela Braga

Bocconi University, BAFFI-CAREFIN

Marco Paccagnella

Bank of Italy

Michele Pellizzari

University of Geneva - GSEM; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Abstract

This paper estimates the impact of college teaching on students' academic achievement and labor market outcomes using administrative data from Bocconi University (Italy) matched with Italian tax records. The estimation exploits the random allocation of students to teachers in a fixed sequence of compulsory courses.We find that good teaching matters more for the labor market than for academic performance. Moreover, the professors who are best at improving the academic achievement of their best students are also the ones who boost their earnings the most. On the contrary, for low ability students the academic and labor market returns of teachers are largely uncorrelated. We also find that professors who are good at teaching high ability students are often not the best teachers for the least able ones. These findings can be rationalized in a model where teaching is a multi-dimensional activity with each dimension having differential returns on the students' academic outcomes and labor market success.

Keywords: teacher quality, higher education

JEL Classification: I20, M55

Suggested Citation

Braga, Michela and Paccagnella, Marco and Pellizzari, Michele, The Academic and Labor Market Returns of University Professors. IZA Discussion Paper No. 7902, Available at SSRN: https://ssrn.com/abstract=2385159 or http://dx.doi.org/10.2139/ssrn.2385159

Michela Braga (Contact Author)

Bocconi University, BAFFI-CAREFIN ( email )

Via Roentgen 1
Milan
Italy

Marco Paccagnella

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Michele Pellizzari

University of Geneva - GSEM ( email )

102 Bd Carl-Vogt
Genève, CH - 1205
Switzerland

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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