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Behavioral inattention and human capital accumulationBarrón Ayllón, Manuel Fernando 13 December 2019 (has links)
I use data from a standardized test applied to second and eighth graders
in rural Peru to show that inability to correctly interpret test scores can affect
schooling outcomes persistently. Marginally classifying as “remedial” in
second grade math reduces rural males’ eighth grade scores by 0.18 standard
deviations, compared to students that obtained marginally higher scores
and were classified as “in transition” in second grade. Since students,
parents, and teachers receive both the score and the label attached to it, this
is evidence of behavioral inattention. Besides being the first study to provide
evidence of behavioral inattention in human capital accumulation in a developing
country setting, this study provides novel evidence on the mechanisms
at play. I show that results owe to classroom environment and household
resource reallocation. Rural males who barely classified as remedial in second
grade are more likely to work, have fewer books available at home,
and perceive a more negative classroom environment by eighth grade than
those who obtained marginally higher scores. These findings have important
implications for educational policy, in particular to the communication of standardized
test scores.
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