NBER Publications by John Papay

The growing prominence of high-stakes exit examinations has made questions about their effects on student outcomes increasingly important. We take advantage of a natural experiment to evaluate the causal effects of failing a high-stakes test on high school completion for the cohort scheduled to graduate from Massachusetts high schools in 2006. With these exit examinations, states divide a continuous performance measure into dichotomous categories, so students with essentially identical performance may have different outcomes. We find that, for low-income urban students on the margin of passing, failing the 10th grade mathematics examination reduces the probability of on-time graduation by eight percentage points. The large majority (89%) of students who fail the 10th grade mathematics exam...