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

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  • Kristin Butcher
  • Patrick McEwan
  • Akila Weerapana

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 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% 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 McEwan & Akila Weerapana, 2022. "Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses," NBER Working Papers 30798, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30798
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    References listed on IDEAS

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    3. Kristin F. Butcher & Patrick J. McEwan & Akila Weerapana, 2014. "The Effects of an Anti-grade-Inflation Policy at Wellesley College," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 189-204, Summer.
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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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