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The Consequences of Letter Grades for Labor Market Outcomes and Student Behavior

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  • Brandon Joel Tan

Abstract

I study the consequences of letter grades serving as coarse measures of academic achievement using university administrative data that record both the letter grade and the precise mark (0–100) received for each course that a given student takes. I exploit a regression discontinuity design with marks as the running variable. I find that receiving a better grade in a single class results in USD 32 greater monthly earnings after graduation, a 1.4% increase. I also find that marginal students who receive a worse grade take significantly easier courses and earn lower grades in future semesters.

Suggested Citation

  • Brandon Joel Tan, 2023. "The Consequences of Letter Grades for Labor Market Outcomes and Student Behavior," Journal of Labor Economics, University of Chicago Press, vol. 41(3), pages 565-588.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/719994
    DOI: 10.1086/719994
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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.
    2. Gholami, Mahdi & Muehlemann, Samuel, 2024. "Math Skills, Selection in Training Firms, and Post-Training Wages," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302349, Verein für Socialpolitik / German Economic Association.
    3. Kenneth Khoo & Jaclyn Neo, 2023. "Gender gaps in legal education: The impact of class participation assessments," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 20(4), pages 1070-1137, December.

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