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The labor market return to academic fraud
Affiliation:1. Department of Economics, Management and Quantitative Methods, University of Milan, via Conservatorio 7, 20122 Milan, Italy;2. Department of Applied Mathematics and Sciences, Khalifa University, PO Box 127788, Abu Dhabi, UAE;3. School of Accounting, Economics and Finance, University of Wollongong, Northfields Avenue, Wollongong 2522 NSW, Australia;4. Department of Mathematics and Statistics, Acadia University, 2011 Acadia University, Wolfville, Nova Scotia, Canada;5. Department of Economics and Statistics “Cognetti de Martiis”, University of Turin, Lungo Dora Siena 100A, 10153, Turin, Italy
Abstract:Academic fraud by undergraduate students is pervasive, but should it be taken seriously as an economic problem? Our research suggests so. Using a unique data set from the Caucasus, we estimate a large positive effect of academic fraud on the probability of employment. Econometrically, we deal with endogenous selection into academic fraud and possible measurement error in the reporting of academic fraud using partial identification techniques. The findings demonstrate that incentives to commit academic fraud are strong and point towards the potentially damaging consequences of academic fraud in broader settings.
Keywords:Academic fraud  Labor market signaling  Selection on unobservables  Partial identification
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