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Public expenditures, educational outcomes and grade inflation: theory and evidence from a policy intervention in the Netherlands

De Witte, Kristof; Geys, Benny; Solondz, Catharina
Journal article, Peer reviewed
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URI
http://hdl.handle.net/11250/195606
Date
2014
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  • Scientific articles [1722]
Original version
Economics of Education Review, 40(2014): 152-166   10.1016/j.econedurev.2014.02.003
Abstract
This article argues that resource expansion can fail to improve actual student performance because it might cause educators to soften grading standards (i.e., induce grade inflation). Our theoretical model shows that, depending on schools’ and students’ reactions to resource changes, the overall effect of resources on education outcomes is ambiguous. Schools, however, have an incentive to adjust their grading structure following resource shifts, such that grade inflation is likely to accompany resource-driven policies. Exploiting a quasi-experimental policy intervention in the Netherlands, we find that additional resources may indeed induce grade inflation, particularly when the resource increase is limited.
Description
This is the authors’ accepted and refereed manuscript to the article. Publisher's version is available at www.elsevier.com
Publisher
Elsevier
Journal
Economics of Education Review

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