School Segregation, Educational Attainment, and Crime: Evidence from the End of Busing in Charlotte-Mecklenburg

We study the end of race-based busing in Charlotte-Mecklenburg schools (CMS). In 2001, school boundaries in CMS were redrawn dramatically, and half of students received a new assignment. Using addresses measured prior to the policy change, we compare students in the same neighborhood that lived on opposite sides of a newly drawn boundary. We find that both white and minority students score lower on high school exams when they are assigned to schools with more minority students. We also find decreases in high school graduation and four-year college attendance for whites and large increases in crime for minority males. We conclude that the end of race-based busing widened racial inequality, despite efforts by CMS to mitigate the effect of segregation through compensatory resource allocation. JEL Codes: I20, I24. Copyright 2014, Oxford University Press.