The stricter the better? The impact of early teacher grading standards on students’ competences development and academic track enrollment

Despite growing interest in teachers' grading practices, little attention has been given to how grading standards—especially early in students' academic careers—impact long-term educational outcomes. This paper addresses that gap by analyzing how teachers' grading severity affects students' skill development and academic track choices, considering gender and socioeconomic background. Using Italian INVALSI-SNV data, we track 5th-grade students and their teachers, following them through 8th and 10th grade. Findings show that stricter grading in 5th grade leads to stronger competencies and a higher likelihood of enrolling in top academic tracks, with no significant variation across different demographic groups.