American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Long-Run Economic Consequences of High-Stakes Examinations: Evidence from Transitory Variation in Pollution
American Economic Journal: Applied Economics
vol. 8,
no. 4, October 2016
(pp. 36–65)
(Complimentary)
Abstract
Cognitive performance during high-stakes exams can be affected by random disturbances that, even if transitory, may have permanent consequences. We evaluate this hypothesis among Israeli students who took a series of matriculation exams between 2000 and 2002. Exploiting variation across the same student taking multiple exams, we find that transitory PM2.5 exposure is associated with a significant decline in student performance. We then examine these students in 2010 and find that PM2.5 exposure during exams is negatively associated with postsecondary educational attainment and earnings. The results highlight how reliance on noisy signals of student quality can lead to allocative inefficiency.Citation
Ebenstein, Avraham, Victor Lavy, and Sefi Roth. 2016. "The Long-Run Economic Consequences of High-Stakes Examinations: Evidence from Transitory Variation in Pollution." American Economic Journal: Applied Economics 8 (4): 36–65. DOI: 10.1257/app.20150213Additional Materials
JEL Classification
- I21 Analysis of Education
- I23 Higher Education; Research Institutions
- I26 Returns to Education
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- Q51 Valuation of Environmental Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling