We use a regression discontinuity design to examine students' responses to being placed on academic probation. Consistent with a model of introducing performance standards, we find that being placed on probation at the end of the first year discourages some students from returning to school while improving the GPAs of those who do. We find heterogeneous responses across prior academic performance, gender, and native language, and discuss these results within the context of the model. We also find negative effects on graduation rates, particularly for students with the highest high school grades.
Lindo, J. M., Sanders, N. J. & Oreopoulos, P. (2010). Ability, gender, and performance standards: Evidence from academic probation. American Economic Journal: Applied Economics, 2 (2), 95-117.