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Do Second Chances Pay Off? Evidence from a Natural Experiment with Low-Achieving Students

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  • Bizopoulou, Aspasia

    (VATT, Helsinki)

  • Megalokonomou, Rigissa

    (Monash University)

  • Simion, Stefania

    (University of Bristol)

Abstract

In several countries, students who fail end-of-high-school high-stakes exams are faced with the choice of retaking them or forgoing postsecondary education. We explore exogenous variation generated by a 2006 policy that imposed a performance threshold for admission into postsecondary education in Greece to estimate the effect of retaking exams on a range of outcomes. Using a fuzzy regression discontinuity design and novel administrative data, we find that low-achieving students who retake national exams improve their performance by half a standard deviation, but do not receive offers from higher quality postsecondary placements. The driving mechanism for these results stems from increased competition.

Suggested Citation

  • Bizopoulou, Aspasia & Megalokonomou, Rigissa & Simion, Stefania, 2022. "Do Second Chances Pay Off? Evidence from a Natural Experiment with Low-Achieving Students," IZA Discussion Papers 15139, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15139
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    More about this item

    Keywords

    postsecondary education admission; low-achieving students; exogenous policy; fuzzy regression discontinuity design;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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