Several features of the Peruvian school system aid to the identification of a causal effect:

  1. Start of year: Within a school-grade, children are assigned a classroom at the start of the academic year (March)
  2. No Tracking: There is no established practice of sorting students based on past academic performance. Nevertheless, all regressions account for this possibility.
  3. No Movement: All students of a particular classroom take all their classes in the same room, with teachers moving between classrooms.
  4. No Influence: Students or parents typically have no influence on classroom assignment

This allows me to take the entrance of new groups of students as quasi-random events conditional con school-by-year fixed-effects. In particular, I compare the standardized test scores of Peruvian students in classroom with varying numbers of Venezuelan students or different numbers of new Peruvian students.

Introducing immigrant students or new native students impact incumbent native students in a similar way: there are no statistically significant differences in effect sizes or in their pattern of heterogeneity. This suggests that a shared characteristic between immigrant students and newly enrolled natives drives the results.

The evidence I find is consistent with a story of natives reacting to the influx of new students to their school--both native and immigrant--by reducing their effort in learning. This is consistent with natives spending more time either befriending or antagonizing recently arrived students instead of studying.

I offer here a novel and subtle interpretation of what is behind the effect of immigrant shocks on academic performance. Policymakers should think carefully before attributing observed effects to characteristics inherent to immigrants instead of characteristics shared with a subset of native students. For example, public resources may be better spent on teacher training programs to help incorporate new students into high schools instead of enforcing policies specifically directed to immigrants. Find the draft here