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Tougher Educational Exam Leading to Worse Selection

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Author Info
Eduardo de Carvalho Andrade
Luciano I. de Castro
Abstract

This paper shows a somehow counterintuitive result: an increase in the exam diculty may reduce the average quality (productivity) of selected individuals. Since the exam does not verify all skills, when its standard rises, candidates with relatively low skills emphasized in the test and high skills demanded in the job may no longer qualify. Hence, an increase in the testing standard may be counterproductive. One implication is that policies should emphasize alignment between the skills tested and those required in the actual jobs.

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File URL: https://netfiles.uiuc.edu/luciano/www/exams.pdf
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Publisher Info
Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1469.

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Date of creation: Sep 2008
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Handle: RePEc:nwu:cmsems:1469

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Related research
Keywords: school standard; signaling model; cognitive skill; noncog- nitive skill;

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall. [Downloadable!] (restricted)
  2. Flavio Cunha & James J. Heckman, 2007. "The Technology of Skill Formation," IZA Discussion Papers 2550, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Julian R. Betts & Robert M. Costrell, 2000. "Incentives and Equity Under Standards-Based Reform," Working Papers 2000-08, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  4. Hanushek, Eric A. & Rivkin, Steven G., 2006. "Teacher Quality," Handbook of the Economics of Education, Elsevier. [Downloadable!] (restricted)
  5. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall. [Downloadable!] (restricted)
  6. Thomas J. Kane & Jonah E. Rockoff & Douglas O. Staiger, 2006. "What Does Certification Tell Us About Teacher Effectiveness? Evidence from New York City," NBER Working Papers 12155, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. James J. Heckman & Paul A. LaFontaine & Pedro L. Rodriguez, 2008. "Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out," Working Papers 200829, Geary Institute, University College Dublin. [Downloadable!]
    Other versions:
  8. Joshua D. Angrist & Jonathan Guryan, 2003. "Does Teacher Testing Raise Teacher Quality? Evidence from State Certification Requirements," NBER Working Papers 9545, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Blackwell Publishing, vol. 53(5), pages 843-62, October. [Downloadable!] (restricted)
  10. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September. [Downloadable!] (restricted)
  11. Thomas S. Dee & Brian A. Jacob, 2006. "Do High School Exit Exams Influence Educational Attainment or Labor Market Performance?," NBER Working Papers 12199, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Klein, Roger & Spady, Richard & Weiss, Andrew, 1991. "Factors Affecting the Output and Quit Propensities of Production Workers," Review of Economic Studies, Blackwell Publishing, vol. 58(5), pages 929-53, October. [Downloadable!] (restricted)
    Other versions:
  13. Betts, Julian R, 1998. "The Impact of Educational Standards on the Level and Distribution of Earnings," American Economic Review, American Economic Association, vol. 88(1), pages 266-75, March. [Downloadable!] (restricted)
  14. James J. Heckman & Yona Rubinstein, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May. [Downloadable!] (restricted)
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