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Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses

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Abstract

In Fall 2014, Wellesley College began mandating pass/fail grading for courses taken by first-year, first-semester students, although instructors continued to record letter grades. We identify the causal effect of the policy on course choice and performance, using a regression-discontinuity-in-time design. Students shifted to lower-grading STEM courses in the first semester, but did not increase their engagement with STEM in later semesters. Letter grades of first-semester students declined by 0.13 grade points, or 23% of a standard deviation. We evaluate causal channels of the grade effect—including sorting into lower-grading STEM courses and declining instructional quality—and conclude that the effect is consistent with declining student effort.

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  • Kristin F. Butcher & Patrick McEwan & Akila Weerapana, 2022. "Making the (Letter) Grade: The Incentive Effects of Mandatory Pass/Fail Courses," Working Paper Series WP 2022-55, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:95387
    DOI: 10.21033/wp-2022-55
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    1. Jeffrey T. Denning & Eric R. Eide & Kevin J. Mumford & Richard W. Patterson & Merrill Warnick, 2022. "Why Have College Completion Rates Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 1-29, July.
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    4. Kristin F. Butcher & Patrick J. McEwan & Akila Weerapana, 2014. "The Effects of an Anti-grade-Inflation Policy at Wellesley College," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 189-204, Summer.
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    Cited by:

    1. Collins, Matthew & Lundstedt, Jonas, 2024. "The effects of more informative grading on student outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 514-549.

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    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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