COVID-19, college academic performance, and the flexible grading policy: A longitudinal analysis

Abstract

I use an unbalanced panel of over 11,000 academic records spanning from Spring 2017 to Spring 2020 to identify the difference in effects of the COVID-19 pandemic across lower- and higher-income students’ academic performance. Using difference-in-differences models and event study analyses with individual fixed effects, I find a differential effect by students’ pre-COVID-19 academic performance. Lower-income students in the bottom quartile of the Fall 2019 cumulative GPA distribution outperformed their higher-income peers with a 9% higher Spring 2020 GPA. This differential is fully explained by students’ use of the flexible grading policy with lower-income ones being 35% more likely to exercise the pass/fail option than their counterparts. While no such GPA advantage is observed among top-performing lower-income students, in the absence of the flexible grading policy these students would have seen their GPA decrease by 5% relative to their counterfactual pre-pandemic mean. I find suggestive evidence that this lower performance may be driven by lower-income top-performing students experiencing greater challenges with online learning. These students also reported a higher use of incompletes than their higher-income peers and being more concerned about maintaining (merit-based) financial aid.