Krzysztof Karbownik

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.

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Using a rich dataset that merges student-level school records with birth records, and leveraging three alternative identification strategies, we explore how increase in access to charter schools in twelve districts in Florida affects students remaining in traditional public schools (TPS). We consistently find that competition stemming from the opening of new charter schools improves reading—but not math—performance and it also decreases absenteeism of students who remain in the TPS. Results are modest in magnitude.

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Public policies often target individuals but within-family externalities of such interventions are understudied. Using a regression discontinuity design, we document how a third grade retention policy affects both the target children and their younger siblings. The policy improves test scores of both children while the spillover is up to 30% of the target child effect size. The effects are particularly pronounced in families where one of the children is disabled, for boys, and in immigrant families. Candidate mechanisms include improved classroom inputs and parental school choice.

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