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Is it always good to let universities select their students?

Higher Education

Research Paper
Authors: Guido Friebel and Dario Maldonado

ABSTRACT: We undertake a first step to investigating a reform that has been applied in numerous universities across Europe: the right to select students. We ask to what extent this right will increase the effciency of the university. While it seems evident that giving universities the right to select students that match best with the human capital of professors should increase efficiency measures in the productivities of students in the labor market, we point to a potentially negative effect. We argue that allowing universities to select the students they prefer can reduce the incentives of the universities to improve the human capital of their professors.

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