The Impact of Letter Grades on Student Effort, Course Selection, and Major Choice: A Regression-Discontinuity Analysis

Joyce B. Main and Ben Ost

The Journal of Economic Education, 2014, vol. 45, issue 1, 1-10

Abstract: The authors apply a regression-discontinuity design to identify the causal impact of letter grades on student effort within a course, subsequent credit hours taken, and the probability of majoring in economics. Their methodology addresses key issues in identifying the causal impact of letter grades: correlation with unobservable factors, such as motivation, and direction of causation. They find no evidence that letter grades influence undergraduate students' course-taking behavior or decision to major in economics. They find that, within a course, the first exam letter grade can affect student performance on the second exam.

Date: 2014
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DOI: 10.1080/00220485.2014.859953

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