Abstract
This paper examines the effect of peer turnover on academic achievement using random variation in classroom composition induced by Tennessee's Student Teacher Achievement Ratio (STAR) experiment. Extremely high levels of classmate turnover are found to positively affect first graders in center city schools and negatively affect students in schools outside of center cities. These results are consistent with a model of classroom learning in which familiar classmates can either be a resource or a distraction. They suggest that a richer understanding of peer continuity effects is essential for designing optimal classroom assignment policies.
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