Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience

Erasmus scholarships are generally allocated on the basis of academic merit, and yet there is a growing concern in some Spanish universities that beneficiaries are often worse students than average. I argue that this paradox may be due to an adverse self-selection of applicants caused by the increas...

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Main Author: Diego Varela
Format: Article
Language:English
Published: UACES 2016-05-01
Series:Journal of Contemporary European Research
Subjects:
Online Access:https://www.jcer.net/index.php/jcer/article/view/697
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author Diego Varela
author_facet Diego Varela
author_sort Diego Varela
collection DOAJ
description Erasmus scholarships are generally allocated on the basis of academic merit, and yet there is a growing concern in some Spanish universities that beneficiaries are often worse students than average. I argue that this paradox may be due to an adverse self-selection of applicants caused by the increased information asymmetry between students and teachers in study-abroad programmes. Such self-selection will have a greater impact in countries where Erasmus is widely available, in which the effect of any merit-based supply-side selection will be smaller. Faced with uncertainty about the performance of individual mobile students, teachers may tend to base their grades on the average performance of mobile students. This will (1) reduce the relationship between academic ability and the final GPA, and (2) discourage good students from participating. I find empirical support for both hypotheses by applying a Heckman endogenous switching-regime model to data from the academic records of 400 graduates from a Spanish university, including 68 Erasmus students. I discuss possible solutions, such as awarding differentiated degrees to Erasmus students. Although the results of this case cannot be automatically translated to other universities or countries, the method could be exported to other cases where there are similar concerns.
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spelling doaj.art-7a751064624c4443a7e26153169b198f2022-12-22T00:53:01ZengUACESJournal of Contemporary European Research1815-347X2016-05-01122697Grade uncertainty and the adverse selection of Erasmus students: a Spanish experienceDiego Varela0Universidade da CoruñaErasmus scholarships are generally allocated on the basis of academic merit, and yet there is a growing concern in some Spanish universities that beneficiaries are often worse students than average. I argue that this paradox may be due to an adverse self-selection of applicants caused by the increased information asymmetry between students and teachers in study-abroad programmes. Such self-selection will have a greater impact in countries where Erasmus is widely available, in which the effect of any merit-based supply-side selection will be smaller. Faced with uncertainty about the performance of individual mobile students, teachers may tend to base their grades on the average performance of mobile students. This will (1) reduce the relationship between academic ability and the final GPA, and (2) discourage good students from participating. I find empirical support for both hypotheses by applying a Heckman endogenous switching-regime model to data from the academic records of 400 graduates from a Spanish university, including 68 Erasmus students. I discuss possible solutions, such as awarding differentiated degrees to Erasmus students. Although the results of this case cannot be automatically translated to other universities or countries, the method could be exported to other cases where there are similar concerns.https://www.jcer.net/index.php/jcer/article/view/697Gradinginternational educationadverse selectionErasmus programmestudy abroad
spellingShingle Diego Varela
Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
Journal of Contemporary European Research
Grading
international education
adverse selection
Erasmus programme
study abroad
title Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
title_full Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
title_fullStr Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
title_full_unstemmed Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
title_short Grade uncertainty and the adverse selection of Erasmus students: a Spanish experience
title_sort grade uncertainty and the adverse selection of erasmus students a spanish experience
topic Grading
international education
adverse selection
Erasmus programme
study abroad
url https://www.jcer.net/index.php/jcer/article/view/697
work_keys_str_mv AT diegovarela gradeuncertaintyandtheadverseselectionoferasmusstudentsaspanishexperience