Does the Clustering of Immigrant Peers Affect the School Performance of Natives?

Abstract

We analyze whether the proportion of immigrant students affects the school performance of natives in secondary school, measured by dropout. To derive causal statements, we construct a time-varying school quality indicator exploiting potential random variation in the number of immigrants within the same school. The results reveal a positive and significant relationship between the proportion of immigrants and the dropout rate of natives. It is only with larger proportions of immigrants that we find significant peer effects. Regarding the mechanisms of influence, our results point to the importance of peer quality.