Beyond the badge of honour: the effect of the academic excellence initiative on staff recruitment in Italy

Understanding how excellence-based funding affects academic recruitment is central to evaluating the broader implications of performance-oriented research policies. We study the Department of Excellence Initiative ("Dipartimenti di Eccellenza") in the Italian higher education system. Unlike other excellence initiatives in Europe, this programme was directed at departments rather than universities. We investigate the effect of the initiative on new faculty positions, distinguishing between external recruitment and internal promotion, as well as different career stages. We also analyse heterogeneity across departmental categories, differentiating between first-tier (top-rated) and second-tier (near-elite) departments. Our findings indicate a positive effect on the creation of new faculty positions within funded departments, particularly through external recruitment and across various career stages. Notably, we provide evidence of greater benefits accruing to second-tier departments relative to their first-tier counterparts, particularly with respect to entry-level tenure-track positions.