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

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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 F. Butcher & Patrick McEwan & Akila Weerapana, 2022. "Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses," Working Paper Series WP 2022-55, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:95387
    DOI: 10.21033/wp-2022-55
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    Keywords

    higher education; grading policy;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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