Does Remedial Education in Late Childhood Pay Off After All? Long-Run Consequences for University Schooling, Labor Market Outcomes, and Intergenerational Mobility

We analyze the long-term effects of a high school remedial education program almost two decades after its implementation. Treated students experienced an 11% increase in completed years of postsecondary schooling, a 4% increase in annual earnings, and a significant increase in intergenerational income mobility. These gains reflect improvement of students mainly from below-median-income families. We conclude that the program had gains 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.