The think-tank has completed the first round of research for its Towards Zero Exclusions report, due out in September.
Jodie Reed, a research fellow at the institute, said: "It's a government requirement that all children excluded for at least 15 days should have full-time alternative provision. But only half of local education authorities are able to meet that requirement all the time."
The institute's report will highlight the importance of multi-agency action to prevent bad behaviour and improve alternative provision.
There were 9,880 permanent exclusions in 2003-04 - an increase of six per cent year on year, according to the Department for Education and Skills.
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