Search

Many students who enter college are insufficiently prepared to follow a demanding college-level curriculum. Thus, higher education institutions often require low-performing students to repeat failed courses, a full term, or even a full year. This paper is the first to investigate the effects of such a “(grade) retention” policy on student performance in higher education. We study a setting where first-year undergraduates who fall short of a pre-defined performance requirement have to repeat all first-year courses before they can proceed to the second year. To determine the causal effect of retention and repetition on student performance, we apply a sharp regression discontinuity design to administrative data from a Swiss university. Based on a sample of 5000 students, we find that grade retention increases dropout probabilities after the first year by about 10 percentage points. Repetition of a full year persistently boosts grade point averages by about 0.5 standard deviations, but does not affect study pace and major choices. [ABSTRACT FROM AUTHOR]

Community colleges play a major role in postsecondary education, yet previous research has emphasized the impact of merit aid on four-year students rather than two-year students. Furthermore, researchers have focused on the impact of merit aid on enrollment and outcomes during college, but to my knowledge, none have yet considered the impact of aid on earnings after college. This paper utilizes discontinuities in eligibility criteria for a large merit scholarship to examine the local impact of aid on student outcomes both during college and after college. The findings suggest that reducing the cost of community college does not impact persistence, academic performance, degree completion, expected earnings, or short-term earnings after college for marginally eligible students. [ABSTRACT FROM AUTHOR]