Causes and Consequences of Academic Inbreeding in Ukraine

Ilona Sologoub, Kyiv School of Economics
Tom Coupe, Kyiv School of Economics 

In Ukraine, education has largely lost its screening function because of widespread corruption and dishonest studying practices, so social ties and personal relations play a leading role in the job search in the entire economy. Hence, it is not surprising that inbreeding is very common in Ukrainian academia - about 50% of faculty obtained their highest degree from the university that employs them. Taking into account that diploma grades provide only a noisy signal of a candidate’s quality, by hiring own graduates universities reduce uncertainty about the qualifications of the newly hired faculty. However, as a person gains other signs of quality (scientific degrees, publications etc.), she can more easily find a job at another university. Our econometric analysis shows that inbred faculty does not differ in its (observable) quality from non-inbred faculty. At the same time, ceteris paribus, inbred faculty members get somewhat lower salaries. 

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Директорка з політико-економічних досліджень
Магістр, Економіка, Києво-Могилянська академія, 2002