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This paper considers whether high schools in competitive environments use grade inflation to attract and retain families, perhaps in addition to more constructive responses. Two measures of grade inflation are used: the cutoffs used by each school to assign a letter grade to a percent score; and high school GPA after controlling for test scores, a rich set of student and school characteristics, and (for a subset) college GPA. Two measures of competition are used: the enrollment-based concentration of school districts in metropolitan areas, and an instrument for this concentration. In both OLS and IV, increased competition significantly affects grade cutoffs: a one standard deviation increase in competition results in about a 0.12 to 0.18 standard deviation fall in the grade cutoffs (ceteris paribus, lower cutoffs yield higher grades). However, in both OLS and IV, competition does not significantly affect the actual assigned grades as measured by GPA. This pattern of results suggests that school administrators under competitive pressure may ease grade standards, but that teachers may re-adjust their scoring to leave actual grades relatively unchanged. (Contains 7 tables, 1 figure and 4 footnotes.)

The National Governors' Association is urging states to develop a standardized cohort graduation rate definition and to develop data systems with quality data that can in turn be used to produce a reliable indicator. This paper is an examination of one state's graduation rate using the cohort method. The statistics generated are compared to a panel based graduation rate, the Average Freshmen Graduation Rate (AFGR) produced by the National Center for Education Statistics and the Cumulative Promotion Index (CPI) published in Education Week. The cohort, panel and AFGR methods generated similar results across all years while the CPI produced a lower rate for two of four years examined. The CPI appears to be more susceptible to population fluctuations than those that use four years of data. (Contains 4 tables and 2 figures.)

We consider the question whether pupils from the lower social strata perform better in private government-dependent schools than in public or private-independent schools, using the PISA 2000 data on European high schools. In the eighty's, Coleman and Hoffer (1987) found in the USA that the performance of these pupils was better at religious schools than at comparable public schools. Dronkers and Robert (2003) found in PISA-data for 19 comparable countries that private government-dependent schools are more effective then comparable public schools, also after controlled for characteristics of pupils and parents and the social composition of the school. The main explanation appeared to be a better school climate in private government-dependent schools. Private independent schools were less effective than comparable public schools, but only after controlling for the social composition of the school. As a follow-up we now investigate, again with the PISA-data of these 19 countries, whether this positive effect of private government-dependent schools differs between pupils from different strata. We use various indicators to measure social strata: social, cultural and economic. We expect that the thesis of Coleman & Hoffer does hold for private government-dependent schools, because in these 19 countries they are mostly religious schools, which have more opportunities to form functional communities and create social capital. But for private independent schools, which due to their commercial foundation are less often functional communities, this relation is not expected to hold. However, the results show that public and private schools have mostly the same effects for the same kind of pupils and thus mostly not favor one kind of pupils above another kind of pupils. But private government-dependent schools are slightly more effective for pupils with less cultural capital. However, private independent schools are also more effective for pupils from large families or low status families. (Contains 4 tables, 12 notes and a list of 25 Literature Resources .)