Sticky assessments – the impact of teachers’ grading standard on pupils’ school performance

This paper argues that school grades cannot be interpreted solely as a reward for a given school performance, since they also reflect teachers’ ratings of pupils. Grades therefore contain valuable information about pupils’ own – usually unknown – ability. The incorporated assessment in grade might be translated into self-assessment, which could influence the effort that pupils invest in education. Getting discounted grades in year 6 for a given level of math performance assessed using a PISA-like test has a positive effect on math test scores in year 8 of elementary education and also influences later outcomes in secondary education. The empirical analysis tries to minimize the possible bias caused by the measurement error in year 6 test scores (unmeasured ability) and employs classroom fixed-effect instrumental variable (IV) regression and difference-in-difference models. The main analysis is based on a unique Hungarian individual-level panel dataset with two observations about the same individual – one in year 6 (12/13 years old) and again two years later, in year 8 (14/15 years old) of elementary education. The data for three entire school cohorts is analyzed – approximately 140,000 individuals. Highlights • Examines the impact of teachers’ grading standards on pupils’ school performance • Takes advantage of having two different measures of pupils’ math knowledge: teacher-given grades and centralized test scores • Assumes that grades are more than test scores, since they incorporate teachers’ ratings • Tries to estimate teachers’ grading standards and minimizes unmeasured ability bias by employing IV regression and diff-in-diff approaches • Finds that year 6 grades positively influence year 8 test scores and year 10 outcomes • Argues that teachers’ assessments translate to self-assessment, which influences pupils’ effort • Concludes that grading standards in elementary school accompany pupils to secondary school