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Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses

Author

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  • Kristin Butcher

    (Federal Reserve Bank of Chicago; NBER; and Department of Economics Wellesley College Wellesley, MA 02481)

  • Patrick J. McEwan

    (Department of Economics Wellesley College Wellesley, MA 02481)

  • Akila Weerapana

    (Department of Economics Wellesley College Wellesley, MA 02481)

Abstract

In fall 2014, Wellesley College began mandating pass/fail grading for courses taken by first-year, first-semester students, although instructors continued to record letter grades. We identify the causal effect of the policy on course choice and performance, using a regression-discontinuity-in-time design. Students shifted to lower-grading science, technology, engineering, and mathematics (STEM) courses in the first semester, but did not increase their engagement with STEM in later semesters. Letter grades of first-semester students declined by 0.13 grade points, or 23 percent of a standard deviation. We evaluate causal channels of the grade effect—including sorting into lower-grading STEM courses and declining instructional quality—and conclude that the effect is consistent with declining student effort.

Suggested Citation

  • Kristin Butcher & Patrick J. McEwan & Akila Weerapana, 2024. "Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses," Education Finance and Policy, MIT Press, vol. 19(3), pages 385-408, Summer.
    • Handle: RePEc:tpr:edfpol:v:19:y:2024:i:3:p:385-408
    DOI: 10.1162/edfp_a_00401
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    Cited by:

    1. Collins, Matthew & Lundstedt, Jonas, 2024. "The effects of more informative grading on student outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 514-549.

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    JEL classification:

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

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