Abstract

This paper studies how information (grades) from standardized tests in mathaffects human capital formation in early schooling. We use a regression discontinuity design to estimate how later outcomes of children scoring just below or above the threshold separating two grades are affected. Our results demonstrate that providing information to parents about their child's educational performance in math in third grade can improve their future educational outcomes, regardless of the child's ability level. We also investigate subjective well-being measures, such as academic confidence and intrinsic motivation, and find no evidence that low-performing students are particularly sensitive to negative feedback from tests.

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