The authors apply a regression-discontinuity design to identify the causal impact of letter grades on student effort within a course, subsequent credit hours taken, and the probability of majoring in economics. Their methodology addresses key issues in identifying the causal impact of letter grades: correlation with unobservable factors, such as motivation, and direction of causation. They find no evidence that letter grades influence undergraduate students' course-taking behavior or decision to major in economics. They find that, within a course, the first exam letter grade can affect student performance on the second exam.
No takes yet. Share an insight, caveat, or question.
Main et al. (2014) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: