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Improving College Performance and Retention the Easy Way: Unpacking the ACT Exam

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  • Eric P. Bettinger
  • Brent J. Evans
  • Devin G. Pope

Abstract

Improving college performance and retention can be difficult. We propose a simple and low-cost change in the way colleges use the ACT exam in their admission decisions that can greatly increase their ability to identify students at a high risk of underperforming and dropping out. Specifically, we show that only two of the four subtests of the ACT, English and Mathematics, can effectively predict outcomes in college. This result is robust across various samples, specifications and outcome measures. We demonstrate that by eliminating the noise associated with the two nonpredictive subtests, student-college matches can be significantly improved. (JEL I23)

Suggested Citation

  • Eric P. Bettinger & Brent J. Evans & Devin G. Pope, 2013. "Improving College Performance and Retention the Easy Way: Unpacking the ACT Exam," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 26-52, May.
    • Handle: RePEc:aea:aejpol:v:5:y:2013:i:2:p:26-52
    Note: DOI: 10.1257/pol.5.2.26
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    References listed on IDEAS

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    Cited by:

    1. Yang, Guangliang, 2014. "Are all admission sub-tests created equal? — Evidence from a National Key University in China," China Economic Review, Elsevier, vol. 30(C), pages 600-617.
    2. Germán Reyes, 2023. "Cognitive Endurance, Talent Selection, and the Labor Market Returns to Human Capital," CRC TR 224 Discussion Paper Series crctr224_2023_490, University of Bonn and University of Mannheim, Germany.
    3. Germ'an Reyes, 2023. "Cognitive Endurance, Talent Selection, and the Labor Market Returns to Human Capital," Papers 2301.02575, arXiv.org.
    4. Pedro Luis Silva, 2024. "Specialists or All-Rounders: How Best to Select University Students?," Journal of Human Capital, University of Chicago Press, vol. 18(2), pages 227-271.
    5. Liane Moneta-Koehler & Abigail M Brown & Kimberly A Petrie & Brent J Evans & Roger Chalkley, 2017. "The Limitations of the GRE in Predicting Success in Biomedical Graduate School," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-17, January.
    6. Lenard, Matthew & Morrill, Melinda Sandler & Westall, John, 2020. "High school start times and student achievement: Looking beyond test scores," Economics of Education Review, Elsevier, vol. 76(C).
    7. Rajeev Darolia & Cory Koedel & Joyce B. Main & Felix Ndashimye & Junpeng Yan, 2020. "High School Course Access and Postsecondary STEM Enrollment and Attainment," Working Papers 2004, Department of Economics, University of Missouri.
    8. Silva, Pedro Luís & Sá, Carla & Biscaia, Ricardo & Teixeira, Pedro N., 2022. "High School and Exam Scores: Does Their Predictive Validity for Academic Performance Vary with Programme Selectivity?," IZA Discussion Papers 15350, Institute of Labor Economics (IZA).
    9. Bai, Chong-en & Chi, Wei & Qian, Xiaoye, 2014. "Do college entrance examination scores predict undergraduate GPAs? A tale of two universities," China Economic Review, Elsevier, vol. 30(C), pages 632-647.
    10. CARRIERI, Vincenzo & D'AMATO, Marcello & ZOTTI, Roberto, 2013. "Selective Admission Tests and Students' Performances. Evidence from a Natural Experiment in a Large Italian University," CELPE Working Papers 0/00, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    11. Loris P Fagioli & Rachel Baker & Gabe Avakian Orona, 2020. "The Role of Non-cognitive Variables in Identifying Community College Students in Need of Targeted Supports," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(6), pages 725-763, September.
    12. Judith Scott-Clayton & Peter M. Crosta & Clive R. Belfield, 2012. "Improving the Targeting of Treatment: Evidence from College Remediation," NBER Working Papers 18457, National Bureau of Economic Research, Inc.
    13. Black, Sandra E. & Lincove, Jane & Cullinane, Jennifer & Veron, Rachel, 2015. "Can you leave high school behind?," Economics of Education Review, Elsevier, vol. 46(C), pages 52-63.
    14. Bulman, George, 2017. "Weighting recent performance to improve college and labor market outcomes," Journal of Public Economics, Elsevier, vol. 146(C), pages 97-108.
    15. Hinrichs, Peter, 2014. "Affirmative action bans and college graduation rates," Economics of Education Review, Elsevier, vol. 42(C), pages 43-52.
    16. Beattie, Graham & Laliberté, Jean-William P. & Oreopoulos, Philip, 2018. "Thrivers and divers: Using non-academic measures to predict college success and failure," Economics of Education Review, Elsevier, vol. 62(C), pages 170-182.
    17. Gandil, Mikkel & Leuven, Edwin, 2022. "College admission as a screening and sorting device," Memorandum 2/2022, Oslo University, Department of Economics.
    18. Foote, Andrew & Schulkind, Lisa & Shapiro, Teny M., 2015. "Missed signals: The effect of ACT college-readiness measures on post-secondary decisions," Economics of Education Review, Elsevier, vol. 46(C), pages 39-51.

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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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    1. Improving College Performance and Retention the Easy Way: Unpacking the ACT Exam (American Economic Journal: Economic Policy 2013) in ReplicationWiki

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