ERIC Number: ED435133
Record Type: Non-Journal
Publication Date: 1999-May
Reference Count: N/A
The Effect of Grade Retention on Educational and Labor Market Outcomes.
Eide, Eric R.; Showalter, Mark H.
This paper examines the decision-making process in retaining a student and the empirical effects of such decisions within an economic framework. The article models the decision to retain a child as a parental decision in which a parent holds a child back because the benefit of retention is higher expected earnings. The costs of retention include deferred entry into the job market and other nonpecuniary considerations. The paper contains an empirical section that uses the High School and Beyond (HSB) data set to examine the effects of retention on the probability of dropping out of high school and on labor market earnings several years after the student has entered the workforce. Information on respondents to the 1980 sophomore cohort of the HSB data set was used. The samples for white males and white females were four to five times as large as their black counterparts. The results show significant differences between males and females who are white and males and females who are black. For all demographic groups, the effect of grade retention on dropping out of high school and on labor-market earnings suggests a negative and statistically significant relationship between repeating a grade and the outcomes. (Contains 34 references and 7 tables.) (RJM)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A