Shortcut: High School Grades as a Signal of Human Capital
This paper uses the High School and Beyond data on the sophomore cohort to examine the effects of high school grades on long-term earnings. It finds that high school grades do have a strong and significant effect on earnings nine years after high school for both men and women, those with and without bachelor's degrees, and controlling for race/ethnicity, SES, region of the country, and whether the high school is public or private. It also confirms other findings of no or negative short-term effects of high school grades on earnings. It argues that employers could use high school graduates' grades to identify potential employees with higher productivity as evidenced by these future higher earnings.
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