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Over one million K-12 students pursue virtual education every year, but researchers know very little about the effectiveness of such programs. This paper exploits a district policy change that suddenly shifted advanced eighth graders into a virtual classroom for Algebra I. After the policy, higher-ability eighth graders in the treatment district began taking Algebra I in the virtual classroom at rates similar to the statewide average of their peers in traditional classrooms. The change in course delivery provides a unique opportunity to study effects of a virtual course on academic outcomes. The analysis uses variation in program uptake across performance quintile, district, and year in a difference-in-difference-in-difference approach to estimate the causal effect of the virtual course, finding that eighth grade virtual students tend to underperform relative to eighth graders who took Algebra I in a traditional classroom and relative to pre-policy, same-district students who had to take the course in ninth grade. [ABSTRACT FROM AUTHOR]

Evidence of grade inflation in U.S. high schools is often misinterpreted due to confusion about how grade inflation is, or should be, defined. This note reduces the confusion by introducing a typology of grade inflation and discussing the implications of each type. We then provide empirical examples of each type of grade inflation using transcript and test-score data from Algebra I classes in North Carolina over a recent ten-year period. Year-specific (static) grade inflation has been, and remains, higher in schools serving relatively disadvantaged student populations; however, differential changes over the past ten years (what we term dynamic grade inflation) have significantly narrowed the socioeconomic gap in static grade inflation. [ABSTRACT FROM AUTHOR]