Students' Social Origins and targeted Grade Inflation
Grade inflation or soft grading is acommon feature of the educational systems of many countries. In this paper I analyse grade inflation in a setting where students differ in social background, a firm decides its hiring strategy and the schools grading policy can be targeted according to student type. A targeted grade inflation may exacerbate the job opportunities of disad- vantaged students compared to advantaged students. This result emerges since the school has an incentive in inflating grades for a larger proportion of students coming from an advantaged social background,
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