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Grade retention has lasting consequences for repeating students. Long-term achievement development of these students is empirically well analysed, with mostly neutral effects. Research on repeating students’ well-being is inconclusive. Given the growing importance of well-being as a school outcome, with long-term implications for general life satisfaction in later adulthood, our study examines grade retention effects on several dimensions of well-being as well as achievement-related socio-emotional outcomes. Our analyses were based on the German National Educational Panel Study (NEPS, n=4,029). Using quasi-experimental methods, our findings indicate that grade retention has no effect on students’ well-being as well as their self-concept, motivation, and interest. Consequently, we conclude that grade retention is a costly, but ineffective measure that neither helps nor harms students.