The Implications of Grading Policies for Student Course Choice

Richard Sabot and John Wakeman-Linn

No DP-3, Williams Project on the Economics of Higher Education from Department of Economics, Williams College

Abstract: Utilizing panel data, we measure the responsiveness of student course choice to grades and asses the impact on the distribution of enrollment across departments of differences in grading policies. We show that grades strongly influence course choice; this influence remains powerful after accounting for student responsiveness to signals of comparative advantage contained in grades. Enrollments are being skewed towards high-grading departments. Finally, we present evidence that, if the aim of grading is to convey information about students relative strengths and weaknesses, greater uniformity in grading policies should be achieved by lowering grades in high grading departments.

Pages: 49 pages
Date: 1988
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