Prior research substantially overstates the cost of retention under test-based promotion policies to both taxpayers and students who delay labor market entry because it omits two important factors. First, there is a delay between the intervention and the taxpayer's expenditure. Second, on average, the treatment leads to less than a full year of…

Social promotion has long been the normal practice in American schools. Critics of this practice, whereby students are promoted to the next grade regardless of academic preparation, have suggested that students would benefit academically if they were made to repeat a grade. Supporters of social promotion claim that retaining students disrupts them…