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Abstract:Administrative data from a large and diverse community college are used to examine if underrepresented minority students benefit from taking courses with underrepresented minority instructors. To identify racial interactions we estimate models that include both student and classroom fixed effects and focus on students with limited choice in courses. We find that the performance gap in terms of class dropout rates and grade performance between white and underrepresented minority students falls by 20 to 50 percent when taught by an underrepresented minority instructor. We also find these interactions affect longer term outcomes such as subsequent course selection, retention, and degree completion. Abstract: Administrative data from a large and diverse community college are used to examine if underrepresented minority students benefit from taking courses with underrepresented minority instructors. To identify racial interactions we estimate models that include both student and classroom fixed effects and focus on students with limited choice in courses. We find that the performance gap in terms of class dropout rates and grade performance between white and underrepresented minority students falls by 20 to 50 percent when taught by an underrepresented minority instructor. We also find these interactions affect longer term outcomes such as subsequent course selection, retention, and degree completion. * We are extremely grateful to Bob Barr, Andrew LaManque, Howard Irvin and Stephen Fletcher for providing the administrative data for students. Special thanks also go to Lydia Hearn, Kathleen Moberg, Mallory Newell, Jerry Rosenberg, and Rowena Tomaneng for providing detailed information on courses, minority student programs, and registration procedures. We also thank Alex Haslam, David Levine, Doug Miller, Uros Petronijevic, Daniel Shack and seminar participants at the University of Calgary, University of British Columbia, University of Manitoba, University of Victoria, the Gender and Academia Conference in Sweden, the NBER Education Program fall meeting, the Presidential and Academic Senate Leadership Presentation at De Anza College, Northern California Community Colleges Institutional Researchers workshop, Case Western University, University of Colorado Boulder, the 2013 American Economics Association annual meeting in San Diego, and RA...