Testing the Way Forward: The Impact of Statewide ACT or SAT Testing on Postsecondary Outcomes

Abstract

Twenty-nine states require or allow all 11th graders to take the ACT or SAT in school, for free, eliminating access to testing as a barrier to college entry. I examine whether this affects postsecondary outcomes using state-aggregated panel data and time-varying difference-in-differences methods. I find policy adoption led to 2% increases in selective 4-year enrollments by students from treated states. However, adoption had no effect on enrollments within adopting states’ selective institutions, in part because institutions enrolled fewer students from out-of-state after adoption. I also find null but directionally negative effects on the number of graduates from state institutions. Therefore, impacts are small but positive for students from adopting states, but null or negative for adopting states’ institutions.