Many American states require that students lacking basic reading proficiency after third grade be retained and remediated. We exploit a discontinuity in retention probabilities under Florida's test-based promotion policy to study its effects on student outcomes through high school. We find large positive effects on achievement that fade out…

Approximately one quarter of U.S. students do not graduate from high school with their peers. Failing to complete high school severely limits opportunities for employment and future financial stability. High school dropouts earn lower wages through their lifetime and work for fewer years. The costs to society of high school dropouts are also high…