Does the Labor Market Reward Easy Certificates? Evidence from Bangladesh

Munshi Sulaiman

Journal of Human Capital, 2012, vol. 6, issue 4, 336 - 367

Abstract: Using a "natural experiment" in the secondary school exit exam in Bangladesh, this paper evaluates the labor market effects of lowering exam difficulty. When exam standards are high, passing the exit exam increases the likelihood of attaining formal employment by 12-13 percentage points (compared to those who completed a similar number of years of education but did not pass the exam) for the male sample and by about 7 percentage points for females. When exam standards are low, these labor market gains disappear. The results indicate the need for greater emphasis on exam standards to improve labor market outcomes for the graduates.

Date: 2012
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