Does State-Mandated Third-Grade Reading Retention Policy Improve Achievement? Evidence from a Staggered-Adoption Difference-in-Differences Design. EdWorkingPaper No. 25-1352

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Title: Does State-Mandated Third-Grade Reading Retention Policy Improve Achievement? Evidence from a Staggered-Adoption Difference-in-Differences Design. EdWorkingPaper No. 25-1352
Language: English
Authors: Sakib Mahmud, Annenberg Institute for School Reform at Brown University
Source: Annenberg Institute for School Reform at Brown University. 2025.
Availability: Annenberg Institute for School Reform at Brown University. Brown University Box 1985, Providence, RI 02912. Tel: 401-863-7990; Fax: 401-863-1290; e-mail: annenberg@brown.edu; Web site: https://annenberg.brown.edu/
Peer Reviewed: N
Page Count: 29
Publication Date: 2025
Document Type: Reports - Research
Education Level: Early Childhood Education
Elementary Education
Grade 3
Primary Education
Grade 4
Intermediate Grades
Descriptors: Grade 3, Educational Policy, State Legislation, Reading Achievement, Literacy, Grade 4, Grade Repetition, Academic Achievement, Achievement Gains
Geographic Terms: Arizona, North Carolina, Ohio, Mississippi
Abstract: This paper investigates whether the state-mandated third-grade reading retention policy autonomously enhances student achievement or depends on broader literacy reforms. Using district-level data from the Stanford Education Data Archive (2010-2019), I employ a staggered-adoption Difference-in-Differences design, as per Callaway and Sant'Anna (2021), to assess heterogeneous treatment effects across four adopting states: Arizona, North Carolina, Ohio, and Mississippi. Results indicate that states implementing retention mandates observe an increase of approximately 0.07-0.10 standard deviations in fourth-grade Reasoning through Language Arts (RLA) scores. Nonetheless, when the mandate is examined in isolation, compared to states with similar literacy initiatives that allow local discretion over retention, the effect diminishes to 0.014 and becomes statistically insignificant. Mississippi is different because of its comprehensive Literacy-Based Promotion Act, which combined retention with intensive teacher training, literacy coaches, and diagnostic supports, leading to larger gains in grade 4 (0.10-0.16 SD). The results indicate that the state-mandated retention policy, by itself, does not lead to better performance; improvements occur only when mandates are part of larger, well-guided literacy programs.
Abstractor: As Provided
Entry Date: 2026
Accession Number: ED678324
Database: ERIC
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  Data: <searchLink fieldCode="DE" term="%22Arizona%22">Arizona</searchLink><br /><searchLink fieldCode="DE" term="%22North+Carolina%22">North Carolina</searchLink><br /><searchLink fieldCode="DE" term="%22Ohio%22">Ohio</searchLink><br /><searchLink fieldCode="DE" term="%22Mississippi%22">Mississippi</searchLink>
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  Data: This paper investigates whether the state-mandated third-grade reading retention policy autonomously enhances student achievement or depends on broader literacy reforms. Using district-level data from the Stanford Education Data Archive (2010-2019), I employ a staggered-adoption Difference-in-Differences design, as per Callaway and Sant'Anna (2021), to assess heterogeneous treatment effects across four adopting states: Arizona, North Carolina, Ohio, and Mississippi. Results indicate that states implementing retention mandates observe an increase of approximately 0.07-0.10 standard deviations in fourth-grade Reasoning through Language Arts (RLA) scores. Nonetheless, when the mandate is examined in isolation, compared to states with similar literacy initiatives that allow local discretion over retention, the effect diminishes to 0.014 and becomes statistically insignificant. Mississippi is different because of its comprehensive Literacy-Based Promotion Act, which combined retention with intensive teacher training, literacy coaches, and diagnostic supports, leading to larger gains in grade 4 (0.10-0.16 SD). The results indicate that the state-mandated retention policy, by itself, does not lead to better performance; improvements occur only when mandates are part of larger, well-guided literacy programs.
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  Data: ED678324
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      – Text: English
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      – TitleFull: Does State-Mandated Third-Grade Reading Retention Policy Improve Achievement? Evidence from a Staggered-Adoption Difference-in-Differences Design. EdWorkingPaper No. 25-1352
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