Racial Fractionalization and School Performance

American Journal of Economics and Sociology, Forthcoming

Posted: 21 Aug 2009

See all articles by Joshua C. Hall

Joshua C. Hall

West Virginia University

Peter T. Leeson

George Mason University - Department of Economics; George Mason University - Mercatus Center

Date Written: July, 24 2009

Abstract

The literature on racial “peer effects” suggests that diversity improves at least some students’ school performance. However, a literature in economic development posits that diversity may negatively affect school performance by undermining the efficient provision of education. This paper empirically tests this claim, which we call the “public goods channel,” by examining the relationship between racial diversity and student performance in Ohio’s school districts. We find that moving from a completely homogenous school district to one in which two racial groups have equal population shares is associated with a 7-17.5 percentage point decline in the passage rate on the state math exam, holding per pupil spending across districts constant. These results suggest that racial diversity is negatively associated with school performance but that the public goods channel is not responsible this relationship.

Suggested Citation

Hall, Joshua C. and Leeson, Peter T., Racial Fractionalization and School Performance (July, 24 2009). American Journal of Economics and Sociology, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1438362

Joshua C. Hall

West Virginia University ( email )

Morgantown, WV 26506
United States

Peter T. Leeson (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

HOME PAGE: http://www.peterleeson.com

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://ppe.mercatus.org/scholars/peter-leeson

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