This study evaluates the unintended consequences of the 2012 suspension ban in New York City. I find that the ban induced a substitution towards classification for students at high risk for suspension—Black students, male students, and those in schools with a high reliance on suspension. I find that disabilities that carry greater stigma and experience greater exclusion from the general education classroom drive the increases in classification. This substitution may benefit students if they are now receiving needed services. Simultaneously, ban-induced classifications may simply serve as a partial substitute for suspension.
We examine the impact of local labor market shocks and state unemployment insurance (UI) policies on student discipline in U.S. public schools. Analyzing school-level discipline data and firm-level layoffs in 23 states, we find that layoffs have little effect on discipline rates overall. However, effects differ across the UI benefit distribution. At the lowest benefit level ($265/week), a mass layoff increases out-of-school suspensions by 4.5%, with effects dissipating as UI benefits increase. Effects are consistently largest for Black students - especially in predominantly White schools - resulting in increased racial disproportionality in school discipline following layoffs in low-UI states.