Abstract
This paper studies how students react when they are exposed to a more flexible university system, with the option of getting a less specialized university degree in shorter time. Using a Regression Discontinuity design that exploits the roll-out of the Bologna Reform in Italy, I compare education and labor market outcomes for cohorts of individuals who were deciding to go to university right before and right after the reform was implemented. Ex-ante, the impact of the reform on university attainment is ambiguous: schooling might increase because more people go to university, but it might also decrease if students who previously would have completed a longer degree now opt to finish studying after a shorter 3-year degree. I show that both mechanisms are at play but that females, on net, spend 0.15 more years in university. This increases female earnings by 1.5-2% while keeping their employment probability constant, implying a return to one year of university of at least 10%. The results are mostly driven by more women graduating from healthcare degrees - a 30% increase - which has important implications on their occupation. They are more likely to work in the healthcare sector, for which a short 3-year degree provides sufficient preparation, and less likely to work in administrative roles. These findings highlight the importance of tailoring educational reforms to the specific demands of different career paths.
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