Grade Inflation and the Signaling Value of Grades

• In Event: High School and Beyond: Social, Institutional, and Financial Contexts

Abstract

Grades serve to motivate students and to inform students, parents, prospective employers and educational gatekeepers about the human capita students have accrued. Some critics argue that the signaling value of grades has been compromised due to rampant grade inflation at the secondary and postsecondary levels. Using data from four cohorts of high school graduates and college attendees, we test for changes in the signaling value of grades over time. We find that average grades have increased, but so has the variance in grades. The relationship between secondary school grades and test scores has remained the same over time and may even have increased slightly. This preliminary evidence leads us to conclude that concerns over grade inflation are misplaced.

Authors

• Eric Grodsky, University of Wisconsin

• Chandra Muller, The University of Texas - Austin

• Evangeleen Faith Pattison, The University of Texas - Austin