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Easy A's, Less Pay: The Long Term Effects of Grade Inflation. Working Paper 34952

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Title: Easy A's, Less Pay: The Long Term Effects of Grade Inflation. Working Paper 34952
Language: English
Authors: Jeffrey T. Denning, Rachel L. Nesbit, Nolan G. Pope, Merrill Warnick, National Bureau of Economic Research (NBER)
Source: National Bureau of Economic Research. 2026.
Availability: National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
Peer Reviewed: N
Publication Date: 2026
Sponsoring Agency: Maryland Longitudinal Data System Center (MLDSC)
Document Type: Reports - Research
Education Level: High Schools
Secondary Education
Higher Education
Postsecondary Education
Descriptors: Grade Inflation, Grading, Graduation Rate, Income, Grades (Scholastic), Success, High School Students, College Attendance
Geographic Terms: Maryland, California (Los Angeles)
Abstract: Average grades continue to rise in the United States, raising the question of how grade inflation impacts students. We provide comprehensive evidence on how teacher grading practices affect students' long-run success. Using administrative high school data from Los Angeles and from Maryland that is linked to postsecondary and earnings records, we develop and validate two teacher-level measures of grade inflation: one measuring average grade inflation and another measuring a teacher's propensity to give a passing grade. These measures of grade inflation are distinct from teacher value-added, with grade inflating teachers having moderately lower cognitive value-added and slightly higher noncognitive value-added. These two measures also differentially impact students' long-term outcomes. Being assigned a higher average grade inflating teacher reduces a student's future test scores, the likelihood of graduating from high school, college enrollment, and ultimately earnings. In contrast, passing grade inflation reduces the likelihood of being held back and increases high school graduation, with limited long-run effects. The cumulative impact is economically significant: a teacher with one standard deviation higher average grade inflation reduces the present discounted value of lifetime earnings of their students by $213,872 per year.
Abstractor: As Provided
Entry Date: 2026
Access URL: https://www.nber.org/papers/w34952
Accession Number: ED679684
Database: ERIC
FullText Text:
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PubType: Report
PubTypeId: report
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  Data: Easy A's, Less Pay: The Long Term Effects of Grade Inflation. Working Paper 34952
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  Data: National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
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  Data: 2026
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  Data: Maryland Longitudinal Data System Center (MLDSC)
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  Data: <searchLink fieldCode="DE" term="%22Grade+Inflation%22">Grade Inflation</searchLink><br /><searchLink fieldCode="DE" term="%22Grading%22">Grading</searchLink><br /><searchLink fieldCode="DE" term="%22Graduation+Rate%22">Graduation Rate</searchLink><br /><searchLink fieldCode="DE" term="%22Income%22">Income</searchLink><br /><searchLink fieldCode="DE" term="%22Grades+%28Scholastic%29%22">Grades (Scholastic)</searchLink><br /><searchLink fieldCode="DE" term="%22Success%22">Success</searchLink><br /><searchLink fieldCode="DE" term="%22High+School+Students%22">High School Students</searchLink><br /><searchLink fieldCode="DE" term="%22College+Attendance%22">College Attendance</searchLink>
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  Label: Abstract
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  Data: Average grades continue to rise in the United States, raising the question of how grade inflation impacts students. We provide comprehensive evidence on how teacher grading practices affect students' long-run success. Using administrative high school data from Los Angeles and from Maryland that is linked to postsecondary and earnings records, we develop and validate two teacher-level measures of grade inflation: one measuring average grade inflation and another measuring a teacher's propensity to give a passing grade. These measures of grade inflation are distinct from teacher value-added, with grade inflating teachers having moderately lower cognitive value-added and slightly higher noncognitive value-added. These two measures also differentially impact students' long-term outcomes. Being assigned a higher average grade inflating teacher reduces a student's future test scores, the likelihood of graduating from high school, college enrollment, and ultimately earnings. In contrast, passing grade inflation reduces the likelihood of being held back and increases high school graduation, with limited long-run effects. The cumulative impact is economically significant: a teacher with one standard deviation higher average grade inflation reduces the present discounted value of lifetime earnings of their students by $213,872 per year.
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  Data: As Provided
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  Data: 2026
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  Data: <link linkTarget="URL" linkTerm="https://www.nber.org/papers/w34952" linkWindow="_blank">https://www.nber.org/papers/w34952</link>
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  Data: ED679684
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED679684
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      – Text: English
    Subjects:
      – SubjectFull: Grade Inflation
        Type: general
      – SubjectFull: Grading
        Type: general
      – SubjectFull: Graduation Rate
        Type: general
      – SubjectFull: Income
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      – SubjectFull: Grades (Scholastic)
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      – SubjectFull: Success
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      – SubjectFull: High School Students
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      – SubjectFull: College Attendance
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      – SubjectFull: Maryland
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      – SubjectFull: California (Los Angeles)
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      – TitleFull: Easy A's, Less Pay: The Long Term Effects of Grade Inflation. Working Paper 34952
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