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In 2002, Florida adopted a test-based promotion policy in the third grade in an attempt to end social promotion. Similar policies are currently operating in Texas, New York City, and Chicago and affect at least 17 percent of public school students nationwide. Using individual-level data on the universe of public school students in Florida, we analyze the impact of grade retention on student proficiency in reading one and two years after the retention decision. We use an instrumental variable (IV) approach made available by the relatively objective nature of Florida's policy. Our findings suggest that retained students slightly outperformed socially promoted students in reading in the first year after retention, and these gains increased substantially in the second year. Results were robust across two distinct IV comparisons: an across-year approach comparing students who were essentially separated by the year in which they happened to have been born, and a regression discontinuity design.

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The theories of cultural reproduction and cultural mobility have largely shaped the study of the effects of cultural capital on academic outcomes. Missing in this debate has been a rigorous examination of how children actually acquire cultural capital when it is not provided by their families. Drawing on data from a large-scale experimental study of schools participating in an art museum’s educational program, we show that students’ exposure to a cultural institution has the effect of creating ‘‘cultural consumers’’ motivated to acquire new cultural capital. We find that the experience has the strongest impact on students from more disadvantaged backgrounds. As such, our analysis reveals important aspects about the nature of cultural capital acquisition. To the extent that the evidence supporting cultural mobility is accurate, it may be because disadvantaged children can be activated to acquire cultural capital, thus compensating for family background characteristics and changing their habitus.