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Masters Thesis

Racial diversity and school quality: an examination of California public schools

Previous analyses of the effect of racial diversity on academic outcomes have largely relied on self-reported measures of costs and benefits. A few studies have used objective measures of academic outcomes and multivariate analysis with cross-sectional data to evaluate the effects of diversity. No studies have used panel data methods or taken spatial dependence into account. Using the California Department of Education's Academic Performance Indicator (API), we estimate a value added model including controls for spatial dependence to show that increased student diversity decreases positive academic outcomes. We also present some evidence that having a faculty that reflects the racial diversity of the student population has a modest positive effect on academic outcomes. We further show that the magnitude of these effects is highly dependent on the socioeconomic status of the students involved.

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