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The impact of grade inflation on higher education enrolment and earnings

Nordin, Martin LU ; Heckley, Gawain LU orcid and Gerdtham, Ulf LU orcid (2019) In Economics of Education Review 73.
Abstract

This study examines the consequences of grade inflation at the upper secondary education level on enrolment in higher education and earnings for Sweden. Although grade inflation is unfair and may imply inefficient allocation of human resources, current knowledge of grade inflation effects on individual outcomes is scarce. One explanation is probably the challenge of measuring and estimating causal grade inflation effects. We find that grade inflation at the school level affects earnings mainly through choice of university and the chosen field of education, rather than through enrolment per se, because attending universities of higher quality and pursuing high-paying fields of education have a substantial impact on earnings. On the other... (More)

This study examines the consequences of grade inflation at the upper secondary education level on enrolment in higher education and earnings for Sweden. Although grade inflation is unfair and may imply inefficient allocation of human resources, current knowledge of grade inflation effects on individual outcomes is scarce. One explanation is probably the challenge of measuring and estimating causal grade inflation effects. We find that grade inflation at the school level affects earnings mainly through choice of university and the chosen field of education, rather than through enrolment per se, because attending universities of higher quality and pursuing high-paying fields of education have a substantial impact on earnings. On the other hand, high-skilled students attending upper secondary schools without grade inflation and, unexpectedly, low-skilled women attending “lenient” schools are harmed by this. This causes extensive unfairness and, plausibly, detrimental welfare effects.

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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Earnings, Grade inflation, Higher education, Upper-secondary education, I2, I21, J24
in
Economics of Education Review
volume
73
article number
101936
publisher
Elsevier
external identifiers
  • scopus:85074836297
ISSN
0272-7757
DOI
10.1016/j.econedurev.2019.101936
language
English
LU publication?
yes
id
d9be9d3b-327a-4610-9e95-9b95a25907cd
date added to LUP
2019-11-20 12:41:46
date last changed
2024-01-16 16:46:25
@article{d9be9d3b-327a-4610-9e95-9b95a25907cd,
  abstract     = {{<p>This study examines the consequences of grade inflation at the upper secondary education level on enrolment in higher education and earnings for Sweden. Although grade inflation is unfair and may imply inefficient allocation of human resources, current knowledge of grade inflation effects on individual outcomes is scarce. One explanation is probably the challenge of measuring and estimating causal grade inflation effects. We find that grade inflation at the school level affects earnings mainly through choice of university and the chosen field of education, rather than through enrolment per se, because attending universities of higher quality and pursuing high-paying fields of education have a substantial impact on earnings. On the other hand, high-skilled students attending upper secondary schools without grade inflation and, unexpectedly, low-skilled women attending “lenient” schools are harmed by this. This causes extensive unfairness and, plausibly, detrimental welfare effects.</p>}},
  author       = {{Nordin, Martin and Heckley, Gawain and Gerdtham, Ulf}},
  issn         = {{0272-7757}},
  keywords     = {{Earnings; Grade inflation; Higher education; Upper-secondary education; I2; I21; J24}},
  language     = {{eng}},
  month        = {{12}},
  publisher    = {{Elsevier}},
  series       = {{Economics of Education Review}},
  title        = {{The impact of grade inflation on higher education enrolment and earnings}},
  url          = {{http://dx.doi.org/10.1016/j.econedurev.2019.101936}},
  doi          = {{10.1016/j.econedurev.2019.101936}},
  volume       = {{73}},
  year         = {{2019}},
}