An introduction to the Economics of Fake Degrees

Gilles Grolleau (1) , Tarik Lakhal (2) , Naoufel Mzoughi (3)

1 LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée
2 IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education
3 ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement

This paper critiques the multifarious ways whereby academic qualifications may be falsified in the international marketplace. The objectives are fourfold: (1) defining the main terms used such as fake degrees and diploma mills; (2) providing a brief history of fake degrees and identifying the factors that explain their recent development; (3) developing a theoretical framework to analyze fake degrees; and (4) exploring the costs and benefits of this activity and its net impact on a given society. Degrees serve instrumental and ceremonial purposes. It is argued that degree holders may be considered as members of a club. They confer to their holders excludable but non-rival property rights such as abilities, signalingand status. The paper contends that holders of fake degrees can be considered as “free riders” on these property rights, especially the status tied to legitimate degrees.

Mots clés: accreditation; Status good; fake degrees; diploma mills

Domaines: Education; Economies et finances

Gilles Grolleau, Tarik Lakhal, Naoufel Mzoughi. An introduction to the Economics of Fake Degrees. Journal of Economic Issues, 2008, 42 (3), pp.673-693. ⟨halshs-00326238⟩