No student left behind? Relative feedback and university completion

We present first evidence that relative feedback can improve both the speed and quality of university graduation. Providing students with ongoing relative feedback on accumulated course credits – a measure of progress toward degree completion – increases the likelihood of graduating within one year of the officially scheduled study duration by 3.7 percentage points (an 8 % increase), thus accelerating graduation by 0.15 semesters (0.12 SD). Importantly, this does not lead to a decline in performance: grades improve by 0.063 SD. There are, however, distributional implications that policymakers need to consider: outcomes of students with medium pre-treatment graduation probabilities improve when the feedback informs them of an above-average performance – otherwise, their outcomes deteriorate. Combined with survey evidence, the pattern of results suggests that learning about own ability is a plausible mechanism.