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 postsec-ondary 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.