Is it good to be LATE? The impact of a preparatory program on upper secondary schooling

The present study estimates the effect of a one-year preparatory program on the likelihood of completing upper secondary school in Denmark. We identify the effect using discontinuations of the program and add to the literature on multiple unordered treatments by suggesting approximations of the effect against a specific option (here 9th grade). Discontinuation significantly increases enrollment in and completion of high school education for students at the affected margins, which under LATE assumptions translates into a negative effect of the preparatory program. There is no effect on enrollment in and completion of a vocational education. Robustness and placebo analyses suggest that results cannot be explained by violations of LATE assumptions.