Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/197652 
Authors: 
Year of Publication: 
2017
Series/Report no.: 
Working Paper No. 2017:15
Publisher: 
Uppsala University, Department of Economics, Uppsala
Abstract: 
Grade retention is a widely used educational policy promoting human capital. However,its benets and costs are still under debate. Retention may aect learning, cognitive and psychologicalcapacities, educational attainment and the lifetime income (through the timingof entry to the labor market). This paper estimates the causal eects of grade retention onall these outcomes exploiting a retention rule based on the school GPA that enables a regressiondiscontinuity design. I use administrative data from a 15-years panel on the universeof students in the educational system in Chile. The ndings are fourfold. First, (marginally)retained students achieve the same amount of education than (marginally) promoted(i.e., high school graduation, higher education enrollment, etc.). Second, they improve theircognitive ability (measured by test scores) in the short and the long run. Third, inducesparents to increase parental time investments and expectations. Fourth, enhances studentpsychological traits, and overall learning experience.
Subjects: 
Grade retention
attainment
cognitive achievement
high school graduation
parental investmet
self-esteem
learning
JEL: 
I21
I26
I3
J24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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