Performance and Retention in Introductory Economics: Additional Evidence

Abstract

In fall 2003, the old adage that economics is the “dismal science” lived up to its name at the institution where I teach. That fall, 40% of our introductory students received grades of D or F, or withdrew. To better understand this, I collected data from principles students in 2005, including from students who withdrew. I use the Heckman 2-step procedure to account for drops and correct for sample selection bias. Results indicate that the effects of gender and ability are understated in uncorrected performance estimations, that female students and freshmen do not perform as well, and student aptitude is positively related to the probability of dropping and to the final grade. I also find that high school economics does not affect performance, and although race influences the probability of withdrawing, it does not influence the final grade.