The Cost of Grade Retention

Marco Manacorda

doi:10.1162/rest_a_00165

The Cost of Grade Retention

¹ Center for Economic and Policy Research · ² Queen Mary University of London · ³ Centre for Economic Policy Research · ⁴ London School of Economics and Political Science

The Review of Economics and Statistics 2012 open access

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.

DOI: 10.1162/rest_a_00165
Volume: 94 (2)
Pages: 596-606
Language: en
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