Work

The Long-Run Economic Consequences of High-Stakes Examinations: Evidence from Transitory Variation in Pollution

Year: 2016

Type: article

Abstract: Cognitive performance during high-stakes exams can be affected by random disturbances that, even if transitory, may have permanent consequences. We evaluate this hypothesis among Israeli students who took a series of matriculation exams between 2000 and 2002. Exploiting variation across the same student taking multiple exams, we find that transitory PM 2.5 exposure is associated with a significant decline in student performance. We then examine these students in 2010 and find that PM 2.5 exposure during exams is negatively associated with postsecondary educational attainment and earnings. The results highlight how reliance on noisy signals of student quality can lead to allocative inefficiency. (JEL I21, I23, I26, J24, J31, Q51, Q53)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.20150213

Authors: Avraham Ebenstein, Victor Lavy, Sefi Roth

Institutions: Hebrew University of Jerusalem, University of Warwick, London School of Economics and Political Science

Language: English

Topic: School Choice and Performance

Subfield: Education

Field: Social Sciences

Domain: Social Sciences

SDG: Quality education

Open Access status: bronze

Funders: Economic and Social Research Council, FP7 Ideas: European Research Council