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Racial Fractionalization and School Performance

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  • Joshua C. Hall
  • Peter T. Leeson

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 article 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 for this relationship.

Suggested Citation

  • Joshua C. Hall & Peter T. Leeson, 2010. "Racial Fractionalization and School Performance," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(2), pages 736-758, April.
    • Handle: RePEc:bla:ajecsc:v:69:y:2010:i:2:p:736-758
    DOI: 10.1111/j.1536-7150.2010.00721.x
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    References listed on IDEAS

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    1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    2. Leeson, Peter T., 2005. "Endogenizing fractionalization," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 75-98, June.
    3. William A. Niskanen, 1998. "Policy Analysis and Public Choice," Books, Edward Elgar Publishing, number 1374.
    4. Hanushek, Eric A., 2002. "Publicly provided education," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 30, pages 2045-2141, Elsevier.
    5. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 16(32), pages 128-166.
    6. Jonathan Guryan, 2004. "Desegregation and Black Dropout Rates," American Economic Review, American Economic Association, vol. 94(4), pages 919-943, September.
    7. Peter T. Leeson, 2008. "Social Distance and Self-Enforcing Exchange," The Journal of Legal Studies, University of Chicago Press, vol. 37(1), pages 161-188, January.
    8. Robert H. Bates, 2000. "Ethnicity and Development in Africa: A Reappraisal," American Economic Review, American Economic Association, vol. 90(2), pages 131-134, May.
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    Cited by:

    1. Rhys Andrews & George A. Boyne & Jennifer Law & Richard M. Walker, 2012. "Strategic Management and Public Service Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-34943-8, December.
    2. Rhys Andrews & Morgen Johansen, 2012. "Organizational Environments and Performance: A Linear or Nonlinear Relationship?," Public Organization Review, Springer, vol. 12(2), pages 175-189, June.
    3. Hall, Joshua C., 2015. "Local Government Border Congruence and the Fiscal Commons: Evidence from Ohio School Districts," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).
    4. Joshua C. Hall & Donald J. Lacombe & Shree B. Pokharel, 2020. "State Exit Exams and Graduation Rates: A Hierarchical SLX Modelling Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 50(2), pages 189-206.
    5. Richard J. Cebula & Joshua C. Hall & Maria Y. Tackett, 2017. "Non-public competition and public school performance: evidence from West Virginia," Applied Economics, Taylor & Francis Journals, vol. 49(12), pages 1185-1193, March.
    6. Joshua C. Hall & Donald J. Lacombe & Joylynn Pruitt, 2017. "Collective bargaining and school district test scores: evidence from Ohio bargaining agreements," Applied Economics Letters, Taylor & Francis Journals, vol. 24(1), pages 35-38, January.
    7. Angioloni, Simone & Ames, Glenn C.W. & Houston, Jack, 2014. "Food Insecurity and Educational Achievement," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162478, Southern Agricultural Economics Association.

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