The Long-Run Effects of Early External Examinations on Eventual Educational Attainment and Labor Market Outcomes

This paper investigates the enduring impacts of external assessments conducted at the culmination of primary education, primarily on the adult outcomes of immigrants residing in the United States. Using an epidemiological approach, we exploit variation in examination types within countries of birth and over time to provide the first evidence that external examinations have negative effects on educational achievement, earnings, and career development. Our IV strategy confirms this pattern. Criticisms of external examinations as inhibiting higher-order thinking or soft skills are supported by our findings, which suggest adverse effects may be working through channels such as reduced educational attainment, inhibited creativity in teaching, and promoted obedience formation. These results highlight the importance of reconsidering the widespread use of external examinations as a tool for measuring educational progress and promoting economic success