Abstract

ABSTRACTGiven the scale of the university reform induced by the Bologna Process, little is known about how the reform impacted those most immediately affected: the students. This paper uses unique micro data from Humboldt-Universität zu Berlin, Germany, to estimate treatment effects on student outcomes. Variation in treatment introduction over time and across subjects generates exogenous assignment of students into treatment (Bachelor) and control groups (Diploma). Results indicate that the Bologna reform led to a significant, sizeable increase in the probability of graduating within planned instructional time; it also decreased standardized study duration and worsened final grades in the treatment group.

Highlights

  • In 1999 the EU member states met in Bologna, Italy, to agree upon the creation of a common higher education area

  • In Germany, the transformation from the traditional and renowned Diploma system to the new degree structure was highly controversial (De Rudder 2010) and went on for almost a decade: Figure 1 displays the number of first-year students in Germany by degree type and shows that the main transition period lasted from the year 2000 until 2010.1 One argument for switching from comprehensive single-tier degrees (Diploma and Magister) to shorter Bachelor degrees was to increase efficiency of the higher education system, by providing the labor market with adequately qualified university graduates within a shorter period of time

  • The results are very similar to the OLS estimates reported in the previous section for the two outcomes ‘probability to graduate within planned instructional time’ and final grade

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Summary

Introduction

In 1999 the EU member states met in Bologna, Italy, to agree upon the creation of a common higher education area. We can investigate reform effects on students’ graduation probability, study duration, and final grades Whereas, this cannot provide a full assessment of the efficiency of the higher education system, the analysis is informative concerning the course of studies and early predictors of subsequent labor market success (Heckman, Stixrud, and Urzua 2006; Borghans et al 2016). Most importantly, the sequential implementation of the reform at the department level generates exogenous variation to identify the Bologna Reform treatment effect Given these main pillars of the analysis, we believe - and discuss in detail – that the precise estimation of reform effects at the university level is informative for a broad set of universities in Germany, and across Europe.

Economic dimension and labor market relevance
Previous evidence on the Bologna reform effects and contribution of the study
Higher education reform at Humboldt-Universität
Data and descriptive analysis
Descriptive statistics
Choice of outcome variables
Analysis of outcome dynamics
The Bologna reform as a natural experiment
Instrumental variables estimates of the Bologna effect
Subsample results and robustness
Mechanisms
Findings
Conclusions
Full Text
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