High-stakes exams carry important consequences for the prospects of reaching university. This study examines whether the incentives associated with exam grades affect educational investments. Exploiting a reform-induced recoding of high school students' grade point average, we identify the effect of high-stakes grades on student behavior. The results show that students who were downgraded by the recoding performed better on subsequent assessments. The increase in academic performance in high school translated into an increased likelihood of university enrollment. As the recoding did not convey information about actual performance, these results emphasize that incentives are important in understanding students’ educational investments.
|Number of pages||43|
|Journal||Journal of Human Resources|
|Early online date||16 Sept 2019|
|Publication status||Published - Apr 2020|
- ECON Applied Economics
- ECON CEPS Education
- student incentives
- high-stakes exams
- human capital
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Dr Hans Henrik Sievertsen
- School of Economics - Associate Professor