www.elsevier.com/locate/econedurev Diplomas for learning, not seat time: the impacts of New York Regents examinations

Economic theory predicts that improvements in signaling of achievement generated by external exit examination systems will (1) result in students learning more and this in turn will (2) enable them to get better paying jobs. Since New York State had the only statewide curriculum-based external exit exam system in the nation in the early 1990s, hypothesis 1 predicts that New York students should out perform socio-economically comparable students from other states. Cross section analysis of mean 8th grade NAEP math scores and SAT-I scores found that New York students were indeed about one grade level equivalent ahead of where one would expect given their socio-economic background. A similar analysis of dropout rate data found no differences between New York and other states. Hypothesis 2 was tested in HSB and NLS-88 data. Female students who reported that their high school required they pass a minimum competency exam in order to graduate were paid significantly more after they graduated from high school. Men di