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Examining Key Impacts of the Test-Optional Movement for Early Adopters

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  • Brianna Felegi

Abstract

By 2019, about 250 postsecondary institutions adopted a test-optional policy. This paper uses a difference-in-difference design to examine the impact of this reform on schools that switched policies between 2006 and 2014. I find that adopting a test-optional policy increased the share of Black, Native American, and Hispanic students as well as Pell Grant recipients. I also show that adopting a test-optional policy did not affect the academic performance of enrolled cohorts but did affect financial aid disbursements. These findings are important considering that several institutions that switched policies during the COVID-19 pandemic have since returned to requiring test scores.

Suggested Citation

  • Brianna Felegi, 2025. "Examining Key Impacts of the Test-Optional Movement for Early Adopters," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 682-688, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:682-88
    DOI: 10.1257/pandp.20251057
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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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