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The Cost of Grade Retention

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  • Marco Manacorda

    (QMUL, CEP (LSE), CEPR, and IZA)

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.

Suggested Citation

  • Marco Manacorda, 2012. "The Cost of Grade Retention," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 596-606, May.
    • Handle: RePEc:tpr:restat:v:94:y:2012:i:2:p:596-606
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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