The long shadow of high stakes exams: Evidence from discontinuities

Hannu Karhunen and Artturi Björk

No 329, Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE

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 di ?erent 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.

Keywords: High school exit exam; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: I21 I26 J24 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2019-09-26
New Economics Papers: this item is included in nep-edu and nep-ure
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