More than a Drop in the Bucket: The Social and Economic Costs of Dropouts and Grade Retentions Associated With Exclusionary Discipline

Each year many students are subject to exclusionary discipline, in fact, 60% of students in Texas are disciplined at-least once between grades 7 through 12. The purpose of this study is to examine the impact of school discipline contact on students’ risk for grade retention and school dropout using a statewide sample of nearly one million 7th grade students tracked through their 12th grade year. Results indicate that school discipline relates to a 24% increase in high school dropout. These additional dropouts are associated with an economic effect of between $750 million and $1.35 billion per year. Results also indicate that school discipline is associated with approximately 6,600 grade retentions per year in the state of Texas. The delayed workforce entry related to grade retention has an effect of over $100 million for the state, including $5.7 million in lost tax revenue. Given the higher discipline rate for minorities, these costs disproportionately affect them. Further, the additional year of instruction costs the state over $76 million dollars.