A Second Chance at Passing: Impacts of a Scholarship for Students Retaking Principles of Microeconomics

Alisha Hancock, Chris Boyd (), Seth Gitter (), Melissa Groves () and Alexa Prettyman ()
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Chris Boyd: Department of Economics, Towson University
Seth Gitter: Department of Economics, Towson University
Melissa Groves: Department of Economics, Towson University
Alexa Prettyman: Department of Economics, Towson University

No 2026-10, Working Papers from Towson University, Department of Economics

Abstract: Introductory economics courses have high failure rates, and students who repeat courses do not necessarily perform better on subsequent attempts, which can negatively impact student retention. We evaluate whether a financial incentive of $1,000 improves pass rates and grades among students retaking Principles of Microeconomics. Eligible students were 36 to 87 percent more likely to pass, depending on their awareness of the opportunity. Consequently, they earned significantly better grades. These results provide new evidence that a scholarship for students retaking difficult introductory courses can have large, positive effects on student performance.

Keywords: Financial incentives; introductory economics; academic performance; retaking courses. (search for similar items in EconPapers)
JEL-codes: A2 I22 I23 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2026-05, Revised 2026-05
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