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Exploiting the human capital versus screening hypothesis frameworks, this paper studies the link between delayed graduation and overeducation, and their effect on wages, by using the ISFOL-Plus data. The evidence lines towards predictions based on the signalling model. However, as to the determinants of overeducation the coefficient of delayed graduation is significant only for delays of 3 years or more and also controlling for the entire set of covariates. This suggests that delay conveys a signal of low skill.
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Aina et al. (2020) studied this question.
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