Globalization, Higher Education, and Neoliberal Values: Evidence from the Bologna Process

Abstract

Globalization’s emphasis on the knowledge economy gradually shifted universities’ objectives away from fostering social cohesion towards developing market skills. What kind of citizenship has emerged from this process? Using a staggered difference-in-differences design, I study the political economy legacy of the largest ever market-oriented transformation in higher education – the Bologna Process – for European millennials. I find evidence for a ‘neoliberal hypothesis’: the reform substantially increased the perceived importance of achieving status and wealth. By contrast, I find no evidence for a ‘humanist hypothesis’: The reform did not change the perceived importance of global equality and environmental issues. Ironically, the Bologna Process heightened the perceived importance of status and wealth without delivering long-run gains in income and employment. My findings dispute that universities indoctrinate students into left-wing politics, and suggest that market-friendly institutional change constructs the ‘student customer’.