Does Remedial Education at Late Childhood Pay Off after All? Long-Run Consequences for University Schooling, Labor Market Outcomes and Inter-Generational Mobility

50 Pages Posted: 11 Dec 2018

See all articles by Victor Lavy

Victor Lavy

University of Warwick - Department of Economics; Hebrew University of Jerusalem - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Assaf Kott

Brown University

Genia Rachkovski

Northwestern University

Date Written: December 2018

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.

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Suggested Citation

Lavy, Victor and Kott, Assaf and Rachkovski, Genia, Does Remedial Education at Late Childhood Pay Off after All? Long-Run Consequences for University Schooling, Labor Market Outcomes and Inter-Generational Mobility (December 2018). NBER Working Paper No. w25332. Available at SSRN: https://ssrn.com/abstract=3298712

Victor Lavy (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 2 588 3245 (Phone)
+972 2 581 6071 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Assaf Kott

Brown University

Box 1860
Providence, RI 02912
United States

Genia Rachkovski

Northwestern University

2001 Sheridan Road
Evanston, IL 60208
United States

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