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How the Timing of Grade Retention Affects Outcomes: Identification and Estimation of Time-Varying Treatment Effects

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  • Jane Cooley Fruehwirth
  • Salvador Navarro
  • Yuya Takahashi

Abstract

We show how the effect of grade retention varies by abilities, by timing of retention, and as time since retention elapses. Existing studies of grade retention are not well equipped to deal with the possibility that students retained at different grades differ in unobservable abilities (dynamic selection) and the effects of retention also vary by the student’s abilities and the timing of retention. We extend existing factor analytic methods for identifying treatment effects in such settings. Using ECLS-K data, we find evidence of dynamic selection into retention and of heterogeneous effects of retention by grade and unobservable abilities.

Suggested Citation

  • Jane Cooley Fruehwirth & Salvador Navarro & Yuya Takahashi, 2016. "How the Timing of Grade Retention Affects Outcomes: Identification and Estimation of Time-Varying Treatment Effects," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 979-1021.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/686262
    DOI: 10.1086/686262
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