Universities have come under increasing pressure to become key drivers of economic development in the age of the knowledge economy. In the case of Italy, there has been concern in recent years about quality and funding of academic institutions, but hardly any reference has been made about the impact of university quality on students' access to the labour market, and therefore on the secondary potential benefits deriving from the definition of appropriate incentives for research performance. This article contributes to fill this gap with a detailed econometric analysis of the determinants of Italian graduates' employability one-year and three-years after graduation, with special reference to university quality measured in terms of research performance. The empirical evidence is based on an Italian National Statistical Institute (ISTAT) survey including information on 47,342 Italian graduates in all scientific disciplines, and on the results of the first national evaluation of academic research activity. It confirms that attending universities with good research performance raises the probability of finding work after graduation. This sheds light on the pivotal role of academic institutions in economic systems, showing that their contribution to employment growth could be substantial, both at the national and regional level.