High‐stakes examinations and educational inequality: Evidence from transitory exposure to air pollution

Abstract

AbstractWe study the impact of transitory random disturbances to cognitive performance and a minimum‐passing‐score policy on access to graduate education among students who took a series of high‐stakes exams. Exploiting thermal inversions and individual fixed effects, we document significant adverse cognitive effects of transitory exposure to air pollution during the exam. The harmful cognitive effects permanently reduce students' chances of getting into graduate school, especially for marginal students who scored just below the cutoff score. Marginal students would be less affected by random disturbances and have more equal access to graduate education had such an exam policy not been adopted.