This paper evaluates the impact on dropout rates of a policy change in Mexico that eliminates grade retention for all first to third-grade students, causing a sharp reduction in repetition rates. I use a 12-year panel of schools to exploit such variation and estimate Difference-in-Difference models showing an average decrease in dropout rates of…

Institutional reforms have been proposed to improve the delivery and financing of education. School Based Management (SBM) is one such institutional reform where decision making is transferred to the school level. Funds are transferred directly to the school and parents, along with teachers and the principal, allocate and oversee the use of…