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Bumblebeeskies is right. Middle School is a Big Transition. If they are smaller physically and immature, then this is the right time to hold them back. But BOTH of them - don't let one go and one stay back.
As to the relationship with dropping out, the statistics also include children who were held back because of attendance. Their parents didn't make them go to school and when they got old enough, they quit. When the stats are corrected for grade retention only the correlation is not as clear.
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 Mother to Sissy - my Mayan Princess (over 25) - International Adoption
Mother to Sassy - my Spanish Princess (over 25) - International Adoption
 Mother to Spiderman (age 6) - domestic open adoption of relative
Grandmother to Pink Princess (age 3) - She rules my heart! 
Retired from my job, but haven't quit working!
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