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High school exit exam policies have been a popular accountability policy tool. Despite their extensive use, the behavioral responses to them and their impact on student outcomes are not fully understood. In this study, a nationally representative longitudinal data set was used to explore the extent to which exit exam policies were associated with transfer behavior. Transfer behavior was of interest because a previous study found that schools that were successful in improving student achievement outcomes were not as successful in keeping transfer and dropout rates low (Rumberger & Palardy, 2005). Students subject to either state, local, or school-initiated exit exam policies were significantly more likely to transfer. The observed effects were larger for the lowest performing students.