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Graded for Life? Long-Run Impacts of High-Stakes Exam Thresholds

Author

Listed:
  • Petri Böckerman
  • Mika Haapanen
  • Christopher Jepsen
  • Hannu Karhunen

Abstract

We estimate the effect of receiving a higher grade on an academic high school exit exam on labor-market outcomes in adulthood. Identification is based on comparing students on different sides of grade cutoffs. Using nationwide Finnish register data, we find that better grades lead to higher income, although the effects are heterogeneous across the grade distribution. The largest and most precise income gains are concentrated among students in the middle of the grade scale. In contrast, we find little evidence of an income increase for those who barely passed, and the estimates for men with the highest grade are large but imprecise.

Suggested Citation

  • Petri Böckerman & Mika Haapanen & Christopher Jepsen & Hannu Karhunen, 2026. "Graded for Life? Long-Run Impacts of High-Stakes Exam Thresholds," CESifo Working Paper Series 12532, CESifo.
    • Handle: RePEc:ces:ceswps:_12532
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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