%0 Journal Article %@ 0734-306X %A De Groote, Olivier %C Chicago, Ill %D 2024 %F publications:48088 %I University of Chicago Press %J Journal of Labor Economics %R 10.1086/726702 %T Dynamic effort choice in high school: costs and benefits of an academic track %U https://publications.ut-capitole.fr/id/eprint/48088/ %X I investigate high school tracking policies using a dynamic discrete choice model of study programs and unobserved effort. I estimate the model using data from Flanders (Belgium) and perform an ex-ante evaluation of a policy that encourages underperforming students to switch to less academically ori- ented programs. This reduces grade retention by a third and dropout by 11%. Although it decreases college enrollment, the decrease in college graduation is small and insignificant. I also show that modeling effort is important, otherwise we would predict smaller decreases in grade retention and dropout and larger decreases in college enrollment and graduation.