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The Cost of Grade Retention

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Author Info
Marco Manacorda
Abstract

This paper uses administrative longitudinal micro data on the universe of Junior High schoolstudents in Uruguay to measure the effect of grade failure on students' subsequent schooloutcomes. Exploiting the discontinuity induced by a rule establishing automatic grade failurefor pupils missing more than 25 days, I show that grade failure leads to substantial drop-outand lower educational attainment even after 4 to 5 years since the time when failure firstoccurred. Complementary evidence based on a change in the regime of grade promotion leadsto very similar conclusions, suggesting that non-random sorting around the discontinuitypoint is unlikely to drive my results.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0878.

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Date of creation: Jul 2008
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Handle: RePEc:cep:cepdps:dp0878

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Related research
Keywords: grade retention; school drop-out; regression discontinuity; sorting;

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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