Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/128379 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5679
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
Subjects: 
education
grade retention
track mobility
dynamic discrete choice models
heterogeneous treatment effects
JEL: 
C33
C35
I21
Document Type: 
Working Paper
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