This paper examines schools' decisions to sort students into different classes and how those sorting processes impact student achievement. There are two potential effects that result from schools creating homogeneous classes-a "tracking effect," which allows teachers to direct their focus to a more narrow range of students, and a peer effect, which causes a particular student's achievement to be influenced by the quality of peers in his classroom. In schools with homogeneous sorting, both the tracking effect and the peer effect should benefit high performing students. However, the effects would work in opposite directions for a low achieving student; he would benefit from the tracking effect, but the peer effect should decrease his score. This paper seeks to determine the net effect for low performing students in order to understand the full implications of sorting on all students.We use a unique student-level data set from Dallas Independent School District that links students to their actual classes and reveals the entire distribution of students within a classroom. We find significant variation in sorting practices across schools and use this variation to identify the effect of sorting on student achievement. Implementing a unique instrumental variables approach, we find that sorting homogeneously by previous performance significantly improves students' math and reading scores. This effect is present for students across the score distribution, suggesting that the net effect of sorting is beneficial for both high and low performing students. We also explore the effects of sorting along other dimensions, such as gifted and talented status, special education status, and limited English proficiency.

This study is the first to measure the impact of federal regulations on consumer prices. By combining consumer expenditure and pricing data from the Bureau of Labor Statistics, industry supply-chain data from the Bureau of Economic Analysis, and industry-specific regulation information from the Mercatus CenterÕs RegData database, we determine that regulations promote higher consumer prices, and that these price increases have a disproportionately negative effect on low-income households. Specifically, we find that the poorest households spend larger proportions of their incomes on heavily regulated goods and services prone to sharp price increases. While the literature explores other specific costs of regulation, noting that higher consumer prices are a probable consequence of heavy regulation, this study is the first to provide a thorough empirical analysis of that relationship across industries. Irrespective of the reasons for imposing new regulations, these results demonstrate that in the aggregate, the negative consequences are significant, especially for the most vulnerable households.

In 2013 Memphis City Schools and Shelby County Schools consolidated into a unified system, creating one of the largest districts in the nation. Six Memphis suburbs subsequently voted to create separate municipal districts. Many school zoning changes resulted from the merger and subsequent splintering of districts, providing a rare opportunity to separately identify the value of both school and district quality as they are capitalized in housing prices. Utilizing school fixed effects and repeat sales data, we find that a one standard deviation increase in test scores increases prices by 3-4% while district administration accounts for 5-8% of home values.

No abstract

No abstract