Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271856 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10212
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
Subjects: 
grade retention
secondary education
higher education degrees
earnings loss
JEL: 
I21
I23
I26
Document Type: 
Working Paper
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