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Does remedial education at late childhood pay off after all? Long-run consequences for university schooling, labor market outcomes and inter-generational mobility
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Lavy, Victor, Kott, Assaf and Rachkovski, Genia (2022) Does remedial education at late childhood pay off after all? Long-run consequences for university schooling, labor market outcomes and inter-generational mobility. Journal of Labor Economics, 40 (1). pp. 239-282. doi:10.1086/713742
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Official URL: http://dx.doi.org/10.1086/713742
Abstract
We analyze in this paper the long term effect of a high school remedial education program, almost two decades after its implementation. We combine high school records with National Social Security administrative data to examine longer-term outcomes when students were in their early 30s. Our evidence suggest that treated students experienced a 10 percentage points increase in completed years of college schooling, an increase in annual earnings of 4 percentage points, an increase of 1.5 percentage points in months employed, and a significant increase in intergenerational income mobility. These gains are reflecting mainly improvement in outcomes of students from below median income families. Therefore, we conclude that remedial education program that targeted underachieving students in their last year of high school had gains that went much beyond the short term significant improvements in high school matriculation exams. A cost benefit analysis of the program suggests that the government will recover its cost within 7-8 years, implying a very high rate of return to this remedial education program.
| Item Type: | Journal Article | ||||||||||
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| Subjects: | H Social Sciences > HB Economic Theory L Education > LC Special aspects of education |
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| Divisions: | Faculty of Social Sciences > Economics | ||||||||||
| Library of Congress Subject Headings (LCSH): | Academic achievement -- Economic aspects, Education, Higher -- Economic aspects, Compensatory education, Remedial teaching, College dropouts -- Prevention | ||||||||||
| Journal or Publication Title: | Journal of Labor Economics | ||||||||||
| Publisher: | University of Chicago Press | ||||||||||
| ISSN: | 0734-306X | ||||||||||
| Official Date: | January 2022 | ||||||||||
| Dates: |
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| Volume: | 40 | ||||||||||
| Number: | 1 | ||||||||||
| Page Range: | pp. 239-282 | ||||||||||
| DOI: | 10.1086/713742 | ||||||||||
| Status: | Peer Reviewed | ||||||||||
| Publication Status: | Published | ||||||||||
| Publisher Statement: | © 2020 by [name of copyright holder]. For pre-publication versions of your article (i.e., pre-prints), appropriate credit means a statement prominently displayed on the paper itself, specifying the paper’s status, date, and journal name. (For example: “Submitted (or Accepted) for publication to (by) Journal Name on MM/DD/YYYY.”) | ||||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||||
| Copyright Holders: | © 2021 The University of Chicago. All rights reserved. | ||||||||||
| RIOXX Funder/Project Grant: |
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