Most school systems grant teachers and school principals considerable discretion in grade retention decisions. This paper argues that schools can exploit this discretion by selectively retaining students to reduce class size which potentially has important implications for public spending on...

This paper studies heterogeneity in schooling decisions by socio-economic status (SES) in response to a repeal of achievement-based admissions requirements (i.e. binding track recommendations) in Germany's between-school tracking system. The main contribution is to show that while previously...

This paper studies responses to high-stakes incentives arising from early ability tracking. We use three complementary research designs exploiting differences in school track admission rules at the end of primary school in Germany's early ability tracking system. Our results show that the need...

This paper studies responses to high-stakes incentives arising from early ability tracking. We use three complementary research designs exploiting differences in school track admission rules at the end of primary school in Germany’s early ability tracking system. Our results show that the need...

We show that in school systems with grade retention or redshirting, birth cohort size is negatively related to the grade-level share of students who are too old for their grade. This compositional effect gives rise to an upward bias in estimates of class size effects based on commonly used...