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Modeling the Effects of Grade Retention in High School

Listed author(s):
  • Bart Cockx

    (Ghent University (SHERPPA), Université catholique de Louvain (IRES), IZA and CESifo)

  • Stijn Baert

    ()

    (Ghent University (SHERPPA), University of Antwerp, Université catholique de Louvain (IRES) and IZA)

  • Matteo Picchio

    ()

    (Department of Economics and Social Sciences, Marche Polytechnic University; CentER, Tilburg University; Sherppa, Ghent University; IZA)

A dynamic discrete choice model is set up to estimate the effects of grade retention in high school, both in the short- (end-of-year evaluation) and long-run (drop-out and delay). In contrast to regression discontinuity designs, this approach captures treatment heterogeneity and controls for grade-varying unobservable determinants. A method is proposed to deal with initial conditions and with partial observability of the track choices at the start of high school. Forced track downgrading is considered as an alternative remedial measure. In the long-run, grade retention and its alternative have adverse effects on schooling outcomes and, more so, for less able pupils.

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File URL: http://sites.uclouvain.be/econ/DP/IRES/2015023.pdf
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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2015023.

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Length: 37
Date of creation: 12 Dec 2015
Handle: RePEc:ctl:louvir:2015023
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