Another chance: Number of exam retakes and university students’ outcomes

Using a difference-in-differences design, we demonstrate that a policy reducing the number of exam retakes per year at one Italian university significantly improved students’ first-year outcomes, resulting in lower dropout rates, increased exam pass rates, and enhanced credit accumulation. Only a small share of these improvements can be explained by changes in the average quality of students enrolling after the reform. The policy also raised on-time graduation rates – the reform’s main objective – without adversely affecting students’ grade point average. Overall, our findings suggest that a cost-effective intervention, such as limiting exam retakes, can substantially enhance student progression and reduce the age at graduation.