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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 ISSN 0734-306X.

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Official URL: http://dx.doi.org/10.1086/713742

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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
Subjects: H Social Sciences > HB Economic Theory
L Education > LC Special aspects of education
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:
DateEvent
January 2022Published
22 October 2021Available
26 January 2021Updated
23 April 2020Accepted
Volume: 40
Number: 1
Page Range: pp. 239-282
DOI: 10.1086/713742
Status: Peer Reviewed
Publication Status: Published
Reuse Statement (publisher, data, author rights): © 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.
Date of first compliant deposit: 1 May 2020
Date of first compliant Open Access: 13 December 2021
RIOXX Funder/Project Grant:
Project/Grant IDRIOXX Funder NameFunder ID
323439European Research Councilhttp://dx.doi.org/10.13039/501100000781
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