The long shadow of high stakes exams: Evidence from discontinuities
Abstract
We estimate the effect of receiving a higher grade on a high school exit exam on labor market and education outcomes. Identification comes from comparing students on different sides of grade cutoffs. Being above a cutoff in an exam leads to (i) an increase in quality of education, but no change in years of schooling, (ii) an increase in yearly earnings that peaks between 1 and 5% at age 48, but no change in employment. At most 60% of the increase in earnings is explained by better education opportunities.
- ISSN: 1795-1801 (Online)
- ISBN: 978-952-209-185-7 (Online)
- JEL: I21, I26, J24
- Publication in PDF-format
- Hannu Karhunen
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- hannu.karhunen@labore.fi
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