Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300033 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11105
Publisher: 
CESifo GmbH, Munich
Abstract: 
We develop a multi-agent model of the education production function where investments of students, parents, and teachers are linked to the presence of minorities in the classroom. We then test the key implications of this model using rich survey data and a mandate to randomly assign students to classrooms. Consistent with our model, we show that exposure to minority peers decreases student effort, parental investments, and teacher engagement and it results in lower student test scores. Observables correlated with minority status explain less than a third of the reduced-form test score effect while over a third can be descriptively attributed to endogenous responses of the agents.
Subjects: 
minorities
indigenous students
peer effects
student effort
parental investments
teachers
JEL: 
I23
I26
D13
Document Type: 
Working Paper
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