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Retaking In High Stakes Exams: Is Less More?

Author

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  • Kala Krishna
  • Sergey Lychagin
  • Veronica Frisancho

Abstract

Placement, both in university and in the civil service, according to performance in competitive exams is the norm in much of the world. Repeat taking of such exams is common despite the private and social costs it imposes. We develop and estimate a structural model of exam retaking using data from Turkey's university placement exam. Limiting retaking results in all agents gaining ex ante and most gaining ex post. This result comes from a general equilibrium effect: Retakers crowd the market and impose negative spillovers on others by raising acceptance cutoffs.

Suggested Citation

  • Kala Krishna & Sergey Lychagin & Veronica Frisancho, 2018. "Retaking In High Stakes Exams: Is Less More?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 449-477, May.
    • Handle: RePEc:wly:iecrev:v:59:y:2018:i:2:p:449-477
    DOI: 10.1111/iere.12276
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    References listed on IDEAS

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    Cited by:

    1. Joshua Goodman & Oded Gurantz & Jonathan Smith, 2020. "Take Two! SAT Retaking and College Enrollment Gaps," American Economic Journal: Economic Policy, American Economic Association, vol. 12(2), pages 115-158, May.
    2. Bizopoulou, Aspasia & Megalokonomou, Rigissa & Simion, Stefania, 2022. "Do Second Chances Pay Off? Evidence from a Natural Experiment with Low-Achieving Students," IZA Discussion Papers 15139, Institute of Labor Economics (IZA).
    3. Asena Caner & Merve Derebasoglu & Cagla Okten, 2024. "Attainment and Gender Equality in Higher Education: Evidence from a Large-Scale Expansion," Journal of Human Capital, University of Chicago Press, vol. 18(3), pages 469-530.
    4. Hayri A. Arslan, 2021. "Preference estimation in centralized college admissions from reported lists," Empirical Economics, Springer, vol. 61(5), pages 2865-2911, November.
    5. Bertola, Giuseppe, 2024. "Retake opportunities, pass probabilities and preparation for exams," Research in Economics, Elsevier, vol. 78(1), pages 99-114.
    6. Aspasia Bizopoulou & Rigissa Megalokonomou & Stefania Simion, 2022. "Do Second Chances Pay Off?," Bristol Economics Discussion Papers 22/762, School of Economics, University of Bristol, UK.
    7. Bratti, Massimiliano & Granato, Silvia & Havari, Enkelejda, 2024. "Another Chance: Number of Exam Retakes and University Students' Outcomes," IZA Discussion Papers 17400, Institute of Labor Economics (IZA).

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    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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