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Learning Through Repetition? A Dynamic Evaluation of Grade Retention in Portugal

Hugo Reis and Emilio Borghesan
Authors registered in the RePEc Author Service: Petra Elisabeth Todd

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: High grade retention rates are a matter of much worldwide debate. Although some students learn more with extended school time, others get discouraged and drop out. This paper develops and implements a dynamic modeling approach for estimating retention effects in Portuguese high schools where over 40% of students were retained. The estimated model is used to simulate academic achievement under existing and alternative retention policies. Results show that the current policy’s average impact on 12th grade math and Portuguese test scores is positive (0.2-0.5 s.d.), but it substantially increases dropout. We solve for the optimal policy to maximize lifetime earnings.

JEL-codes: J (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-edu and nep-ure
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