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Tougher educational exam leading to worse selection

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  • de Carvalho Andrade, Eduardo
  • de Castro, Luciano I.

Abstract

A parallel of education with transformative processes in standard markets suggest that a more severe control of the quality of the output will improve the overall quality of the education. This paper shows a somehow counterintuitive result: an increase in the exam diffculty may reduce the average quality (productivity) of selected individuals. Since the exam does not verify all skills, when its standard rises, candidates with relatively low skills emphasized in the test and high skills demanded in the job may no longer qualify. Hence, an increase in the testing standard may be counterproductive. One implication is that policies should emphasize alignment between the skills tested and those required in the actual jobs, rather than increase exams' diffculty.

Suggested Citation

  • de Carvalho Andrade, Eduardo & de Castro, Luciano I., 2011. "Tougher educational exam leading to worse selection," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-24.
    • Handle: RePEc:zbw:ifweej:201117
    DOI: 10.5018/economics-ejournal.ja.2011-17
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    References listed on IDEAS

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    1. Sevket Alper Koc & Hakki Cenk Erkin, 2015. "Standards, Inequality in Education and Efficiency," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(1), pages 21-43, June.

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    More about this item

    Keywords

    school standard; signaling model; cognitive skill; noncognitive skill;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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