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College admissions testing and learning about ability: Evidence from strategic ACT and SAT taking

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  • Shah, Hema

Abstract

Using administrative data from North Carolina, I study the decision to take the SAT in the presence of universal ACT testing. I find that low-income students are less likely than their peers to take the SAT in addition to the state-mandated ACT, and that they improve upon their initial ACT scores by less when doing so. Taken together, these disparities decrease low-income students’ rankings in the test score distribution when evaluating students on their maximum score rather than their initial ACT score. Income gaps in SAT taking are partially driven by differential responses to the ability signal sent by a student’s initial ACT score.

Suggested Citation

  • Shah, Hema, 2026. "College admissions testing and learning about ability: Evidence from strategic ACT and SAT taking," Economics of Education Review, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:ecoedu:v:112:y:2026:i:c:s0272775726000397
    DOI: 10.1016/j.econedurev.2026.102797
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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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