Black students are about 1.5 times more likely to be receiving special education (SpEd) services relative to white students. While there is concern that this implies some black students are inappropriately placed in SpEd, the impacts of the disproportionate representation of minority students in SpEd remains unclear. Using administrative data from Texas, we find that capping black disproportionality led to small gains in high school completion and college attainment for black students in special and general education. Overall, our results suggest that reductions in SpEd misclassification among black students may serve to reduce gaps in later-life success across race.
Over 13 percent of US students participate in Special Education (SE) programs annually, at a cost of $40 billion. However, the effect of SE placements remains unclear. This paper uses administrative data from Texas to examine the long-run effect of reducing SE access. Our research design exploits variation in SE placement driven by a state policy that required school districts to reduce SE caseloads to 8.5 percent. We show that this policy led to sharp reductions in SE enrollment. These reductions in SE access generated significant reductions in educational attainment, suggesting that marginal participants experience long-run benefits from SE services.