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Information and Inflation: An Analysis of Grading Behavior

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  • Lehr Brandon

    (Department of Economics, Occidental College, 1600 Campus Road, Los Angeles, CA 90041, USA)

Abstract

I study the impact on grades assigned at Occidental College, a selective private liberal arts college, following the introduction of a policy that provides information about average grades across campus to instructors each semester. Using transcript level data from 2009 to 2014, I find that after the information provision, previously below average grading courses increased grades by 0.08 grade points more than the previously above average grading courses. This finding of grade compression holds across all course levels and divisions, expect for in the sciences. With respect to students, the relative increase in grades in the previously low grading courses disproportionately benefited Black and Hispanic students relative to White and Asian students. In addition, the grade distribution shifted with previously below average grading courses increasing the share of A’s and decreasing the share of B’s and C’s following the grade information provision.

Suggested Citation

  • Lehr Brandon, 2016. "Information and Inflation: An Analysis of Grading Behavior," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 755-783, April.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:2:p:755-783:n:17
    DOI: 10.1515/bejeap-2015-0138
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    References listed on IDEAS

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    More about this item

    Keywords

    grade compression; grade inflation; information provision; higher education;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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