Long-term effects of grade retention

R&R The Economic Journal


Grade retention offers students a chance to catch up with unmastered material but also leads to less labor-market experience by delaying graduation and labor-market entry. This is the first paper to quantify this trade-off, using an exit exam cutoff of Dutch academic secondary schools, where failing implies grade retention. I find no impact of retaining on final educational attainment, although retained students are later to graduate. Grade retention does lead to annual earnings loss at age 28 of 3000 euro (8.5%) due to reduced labor-market experience. Overall, grade retention is of no benefit for students around the cutoff. 



Long-Term Effects of School-Starting-Age Rules

with Hessel Oosterbeek and Bas van der Klaauw, Economics of Education Review, 84, 2021, 102144


To study the long-term effects of school-starting-age rules in a setting with early ability tracking, we exploit the birth month threshold used in the Netherlands. We find that students born just after the threshold perform better at the end of primary school than students born just before it. This translates into increased placement in high ability tracks in secondary education. This difference diminishes gradually during subsequent stages, and we find no effect on the highest attained educational level. Those born just before the threshold enter the labor market somewhat younger and therefore have more labor market experience and higher earnings at any given age until 40. We conclude that early ability tracking does not harm long-term outcomes of children who were, for exogenous reasons, placed in a lower track.


Work in progress