Abstract
The impact of high school graduation exams on student achievement and dropout rates is examined. Using data from the National Educational Longitudinal Survey (NELS), this analysis is able to control for prior student achievement and a variety of other student, school, and state characteristics. It was found that graduation tests have no significant impact on 12th-grade math or reading achievement. These results are robust with a variety of specification checks. Although graduation tests have no appreciable effect on the probability of dropping out for the average student, they increase the probability of dropping out among the lowest ability students. These results suggest that policymakers would be well advised to rethink current graduation test policies.