The Cost of Grade Retention

Marco Manacorda
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Marco Manacorda: QMUL, CEP (LSE), CEPR, and IZA

The Review of Economics and Statistics, 2012, vol. 94, issue 2, pages 596-606

Abstract: This paper uses administrative longitudinal microdata on junior high school students in Uruguay to measure the effect of grade failure on students' subsequent school outcomes. Exploiting the discontinuity induced by a rule establishing automatic grade failure for pupils with more than three failed subjects, I show that grade failure leads to substantial dropout and lower educational attainment even four to five years after grade failure occurred. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: grade retention; school drop-out; regression discontinuity (search for similar items in EconPapers)
JEL-codes: I21 I22 J20 (search for similar items in EconPapers)
Date: 2012
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