American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Unintended Consequences of Academic Leniency
American Economic Journal: Economic Policy
(pp. 130–59)
Abstract
Education is widely recognized as the primary driver of human capital accumulation. However, policies designed to promote educational attainment often overlook students' endogenous responses. This paper provides empirical evidence of the causal impact of relaxed academic standards on student effort and achievement. We find that academic leniency results in mechanical GPA increases, but significant reductions in effort among lower ability students based on lower attendance and lower numerical grades. These heterogeneous effects compound and exacerbate gaps in engagement and achievement throughout high school, ultimately worsening deficits in human capital accumulation as measured by ACT scores.Citation
Bowden, A. Brooks, Viviana Rodriguez, and Zach Weingarten. 2026. "The Unintended Consequences of Academic Leniency." American Economic Journal: Economic Policy 18 (4): 130–59. DOI: 10.1257/pol.20240582Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I24 Education and Inequality
- I28 Education: Government Policy
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination