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Student Characteristics, Peer Effects and Success in Introductory Economics

ABSTRACT This research presents two important pedagogical findings. First, the regression model developed in this study demonstrates that high school grade point average, math entrance score on the Scholastic Aptitude Test, and enrollment in the Honors College at Western Carolina University were all statistically significant predictors of student achievement in principles of economics classes at this university. Conversely, gender, one of the explanatory variables in the model, proved not to be statistically significant. Second, a t-test of means revealed that there were positive and statistically significant peer effects for Honors College students who were enrolled in Honors College classes. Specifically, honors students in honors classes had significantly higher test scores than honors students in non-honors classes. INTRODUCTION This purpose of this study is twofold. First, it examines the student characteristics that are most likely to lead to student success in introductory courses in economics, as measured by exam scores. Special attention was given to student aptitudes as measured by high school grade point average (GPA) and college entrance scores - measured by verbal and math scores in the Scholastic Aptitude Test (SAT) - and gender. Second, the study examined whether or not peer effects exist at the individual class level between honors students who are enrolled in strictly honors sections versus honors students who are enrolled in non-honors sections of principles of economics. This research approaches peer effects uniquely in that they are examined at the individual section level. The study first employs regression analysis to identify the important determinants of student success in principles of economics classes. Secondly, two tests of means are employed to ascertain whether or not there are peer effects for Honors College students based on whether they were enrolled in an honors only section of principles of economics or in a section open to all undergraduate students. PREVIOUS RESEARCH In previous pedagogical studies of student traits that contribute to success in introductory principles of economics courses, researchers have focused on various student characteristics, such as math aptitude, verbal aptitude, and gender as possible predictors of student achievement in these classes. With respect to student aptitude, Durden and Ellis (1995) found that the math entrance score of the SAT was significantly related to student success in economics. Williams, Waldauer, and Duggal (1992) found that Math SAT scores were positively related and statistically significant to success in non-essay economics tests. In a comprehensive study of college in the United Kingdom, Lumbsden and Scott (1987) reported that achieving an "A" understanding of mathematics contributed significantly to student success to multiple-choice exams in economics. Using their own test for math skills, as well as American College Testing (ACT) math entrance scores, researchers Ballard and Johnson (2004) found that math skills were a statistically significant predictor of student success on economics exams. In the same study, they also found that ACT verbal entrance scores to be significantly positive indicators of success in economics tests. Several studies have explored whether or not there is a statistically significant difference between the performance of male and female students on economics exams. Some research has concluded that females do not perform as well as their male counterparts in economics classes, at least those that employ multiple-choice questions to assess student performance. Studies that support this conclusion include Anderson, Benjamin, and Fuss (1994), Lumbsden and Scott (1987), and Siegfried (1992). A contrary conclusion was reached by Williams, Waldauer, and Duggal (1992). Several studies have examined the peer effects of roommates in higher education. In an extensive study at Dartmouth, Sacerdote (2001) concluded that peer effects based on room assignment had a significant impact on GPA. …