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The effect of grade retention on secondary school performance: Evidence from a natural experiment
Sergio Parra-Cely1, Bart H H Golsteyn2, Maria Ferreira-Sequeda3
1School of Economics, Universidad San Francisco de Quito USFQ, Quito, Ecuador.
Abstract:
We study the effects of grade retention on secondary school performance using a change in legislation in Colombia. In 2010, the rule that allowed schools to retain a maximum of 5 percent of their students was abolished. We exploit variation in changes in schools' retention rates across time in a difference-in-differences framework, and find that higher school retention rates improved performance on high-school exit tests scores. While gains in learning did not differ between STEM and non-STEM subjects, increased retention disproportionately benefited non-retained students, students from higher socioeconomic backgrounds, private schools, and schools operating under a full day shift.
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