What You Do in High School Matters: The Effects of High School GPA on Educational Attainment and Labor Market Earnings in Adulthood

Abstract

Using abstracted grades and other data from Add Health, we investigate the effects of cumulative high school GPA on educational attainment and labor market earnings among a sample of young adults (ages 24-34). We estimate several models with an extensive list of control variables and high school fixed effects. Results consistently show that high school GPA is a positive and statistically significant predictor of educational attainment and earnings in adulthood. Moreover, the effects are large and economically important for each gender. Interesting and somewhat unexpected findings emerge for race. Various sensitivity tests support the stability of the core findings.High school grades; Educational attainment; Earnings; Panel data