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This paper investigates the effects of standardized testing and publication of achievement data on low reading performance for immigrant and non-immigrant students in 30 OECD countries. The paper aims to test hypotheses derived from a principal-agent framework. According to this theoretical perspective, standardized assessments alone should not be associated with reading performance. Instead, the model proposes that the provision of the results to the principle (parents and education authorities) is associated with higher student performance, as this reduces the information asymmetry between principal (parents and educational authorities) and agent (teachers and schools). The results of our analyses of PISA 2009 and 2015 reading data from 422.172 students show that first, the use of standardized achievement tests alone was not associated with the risk of low performance. Second, making the results of standardized tests available to the public was associated with a decreased risk of low reading performance among all students, and, third, particularly among first generation immigrant students. These results were robust across various modeling approaches. In accordance with the predictions from the principal-agent framework, our findings suggest that the mere implementation of standardized assessments has no effects on low performance. Testing along with the public provision of the testing results, which decreases the information asymmetry between schools and teachers on the one hand and parents and education authorities on the other, was associated with a decreased risk of low performance, with the effect being stronger for immigrant students.
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