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a b s t r a c tAdministrative data on fifth grade students in North Carolina shows that more highly qualified teachers tend to be matched with more advantaged students, both across schools and in many cases within them. This matching biases estimates of the relationship between teacher characteristics and achievement; we isolate this bias in part by focusing on schools where students are distributed relatively evenly across classrooms. Teacher experience is consistently associated with achievement; teacher licensure test scores associate with math achievement. These returns display a form of heterogeneity across students that may help explain why the observed form of teacher-student matching persists in equilibrium.

We use data on statewide end-of-course tests in North Carolina to examine the relationship between teacher credentials and student achievement at the high school level. The availability of test scores in multiple subjects for each student permits us to estimate a model with student fixed effects, which helps minimize any bias associated with the non-random distribution of teachers and students among classrooms within schools. We find compelling evidence that teacher credentials affect student achievement in systematic ways and that the magnitudes are large enough to be policy relevant. As a result, the uneven distribution of teacher credentials by race and socioeconomic status of high school students-a pattern we also document-contributes to achievement gaps in high school.

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