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A Second Chance at Passing: Impacts of a Scholarship for Students Retaking Principles of Microeconomics

Author

Listed:
  • Alisha Hancock
  • Chris M. Boyd

    (Department of Economics, Towson University)

  • Seth R. Gitter

    (Department of Economics, Towson University)

  • Melissa Groves

    (Department of Economics, Towson University)

  • Alexa Prettyman

    (Department of Economics, Towson University)

Abstract

Introductory economics courses have high failure rates, and students who repeat courses do not necessarily perform better on subsequent attempts, which can negatively impact student retention. We evaluate whether a financial incentive of $1,000 improves pass rates and grades among students retaking Principles of Microeconomics. Eligible students were 36 to 87 percent more likely to pass, depending on their awareness of the opportunity. Consequently, they earned significantly better grades. These results provide new evidence that a scholarship for students retaking difficult introductory courses can have large, positive effects on student performance.

Suggested Citation

  • Alisha Hancock & Chris M. Boyd & Seth R. Gitter & Melissa Groves & Alexa Prettyman, 2026. "A Second Chance at Passing: Impacts of a Scholarship for Students Retaking Principles of Microeconomics," Working Papers 2026-10, Towson University, Department of Economics, revised May 2026.
    • Handle: RePEc:tow:wpaper:2026-10
    as

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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2026-10.pdf
    File Function: First version, 2026
    Download Restriction: no
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    More about this item

    Keywords

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    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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