Institutional Change and Professional Norms: A Study of Grading Behavior in Higher Education

This study investigates how an institutional exogenous change interacts with professional norms in relation to behavior in public organizations. We test how a new grading scale introduced in 2007 changed grade point averages and pass rates at two university departments. Data consist of register data on grading between 2004 and 2010. We find that the new grading scale both increased grade point averages and pass rates and halted the negative time trend in these variables. These effects are even greater for exams with an external examiner. The main conclusion is that grading systems affect grading both immediately and over time.