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Grade retention policies are intended to support struggling third graders in U.S. schools every year. Nevertheless, the research literature on the impacts of test-based grade retention is surprisingly thin. Using Indiana’s test-based third grade retention policy, this proposed project will provide a comprehensive analysis of the effects of mandatory test-based retention policies on academic and behavioral trajectories. My analysis will offer valuable policy information by providing empirical evidence on the impacts of grade retention for both short- and longer-term student outcomes. Moreover, my findings will reveal whether the effects of grade retention are more or less beneficial (or harmful) across different student populations.