Degree classification and recent graduates’ ability: Is there any signalling effect?

Research across several countries has shown that degree classification (i.e. the final grade awarded to students successfully completing university) is an important determinant of graduates’ first destination outcome. Graduates leaving university with higher degree classifications have better employment opportunities and a higher likelihood of continuing education relative to those with lower degree classifications. This article investigates whether one of the reasons for this result is that employers and higher education institutions use degree classification as a signalling device for the ability that recent graduates may possess. Given the large number of applicants and the amount of time and resources typically required to assess their skills, employers and higher education institutions may decide to rely on this measure when forming beliefs about recent graduates’ abilities. Using data on two cohorts of recent graduates from a UK university, results suggest that an Upper Second degree classification may have a signalling role.

The signalling effect of eco-labels in modern coastal tourism

As the demand for environmentally sustainable tourism grows, eco-labels are becoming increasingly popular as a signal of environmental quality. However, the existence of a causal link between awarding a seaside eco-label and the increase in tourism flows is still under discussion in the literature. In this article, we gauge the signalling impact of a specific eco-label, the Blue Flag award, using detailed data on tourism flows to seaside Italian destinations during the period 2008-2012. We adopt a recent econometric modelling strategy - the synthetic control method - in shaping estimation results and testing the sensitivity and robustness of our results. We find that being awarded the Blue Flag increases the flow of domestic tourists for up to three seasons after assignment. However, we find no effect for the flow of international tourists. Investigating the mechanisms driving the results, we find that the award of a Blue Flag only positively affects the flow of domestic tourists when it is used as a driver of organisation, coordination and integrated management of the tourism supply.