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No Pass No Drive: Education and Allocation of Time

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  • Barua, Rashmi

    ()
    (Singapore Management University)

  • Vidal-Fernández, Marian

    ()
    (University of New South Wales)

Abstract

Do negative incentives or sticks in education improve student outcomes? Since the late 1980s, several U.S. states have introduced No Pass No Drive (NPND) laws that set minimum academic requirements for teenagers to obtain driving licenses. Using data from the American Community Survey (ACS) and Monitoring the Future (MTF), we exploit variation across state, time, and cohort to show that NPND laws led to a 6.4 percentage point increase in the probability of graduating from high school among black males. Further, we show that NPND laws were effective in reducing truancy and increased time allocated to school-work at the expense of leisure and work.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6464.

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Length: 37 pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6464

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Keywords: negative incentives; education; allocation of time; dropout; No Pass No Drive laws;

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  1. Thomas Dee, 2009. "Conditional cash penalties in education: Evidence from the learnfare experiment," Framed Field Experiments 00199, The Field Experiments Website.
  2. Eric P. Bettinger, 2012. "Paying to Learn: The Effect of Financial Incentives on Elementary School Test Scores," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 686-698, August.
  3. James J. Heckman & Paul A. LaFontaine, 2010. "The American High School Graduation Rate: Trends and Levels," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 244-262, May.
  4. Kremer, Michael & Miguel, Edward & Thornton, Rebecca & Ozier, Owen, 2005. "Incentives to learn," Policy Research Working Paper Series 3546, The World Bank.
  5. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
  6. Rashmi Barua & Kevin Lang, 2009. "School Entry, Educational Attainment and Quarter of Birth: A Cautionary Tale of LATE," NBER Working Papers 15236, National Bureau of Economic Research, Inc.
  7. Roland G. Fryer, Jr, 2010. "Financial Incentives and Student Achievement: Evidence from Randomized Trials," NBER Working Papers 15898, National Bureau of Economic Research, Inc.
  8. Jason M. Lindo & Nicholas J. Sanders & Philip Oreopoulos, 2008. "Ability, Gender, and Performance Standards: Evidence from Academic Probation," NBER Working Papers 14261, National Bureau of Economic Research, Inc.
  9. Vidal-Fernández Marian, 2011. "The Effect of Minimum Academic Requirements to Participate in Sports on High School Graduation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-21, August.
  10. Uri Gneezy & Stephan Meier & Pedro Rey-Biel, 2011. "When and Why Incentives (Don't) Work to Modify Behavior," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 191-210, Fall.
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