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Sity of Michigan at Ann Arbor and University of Illinois at Urbana-Champaign June 2006 Keywords: Kindergarten, school enrollment, human capital, grade retention, learning disabilities, peer effects, family background. JEL Codes: I10, I21, J13, J24 * We thank seminar participants at the University of California-Berkeley, Cornell University, the Federal Reserve Bank of Chicago, University of Illinois-Chicago, University of Michigan, Michigan State University, University of Texas-Austin, the Na.

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