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We study the end of race-based busing in Charlotte-Mecklenburg schools (CMS). In 2001, school boundaries in CMS were redrawn dramatically, and half of students received a new assignment. Using addresses measured prior to the policy change, we compare students in the same neighborhood that lived on opposite sides of a newly drawn boundary. We find that both white and minority students score lower on high school exams when they are assigned to schools with more minority students. We also find decreases in high school graduation and four-year college attendance for whites and large increases in crime for minority males. We conclude that the end of race-based busing widened racial inequality, despite efforts by CMS to mitigate the effect of segregation through compensatory resource allocation. JEL Codes: I20, I24.

We study the end of race-based busing in Charlotte-Mecklenburg schools (CMS). In 2001, school boundaries in CMS were redrawn dramatically, and half of students received a new assignment. Using addresses measured prior to the policy change, we compare students in the same neighborhood that lived on opposite sides of a newly drawn boundary. We find that both white and minority students score lower on high school exams when they are assigned to schools with more minority students. We also find decreases in high school graduation and four-year college attendance for whites and large increases in crime for minority males. We conclude that the end of race-based busing widened racial inequality, despite efforts by CMS to mitigate the effect of segregation through compensatory resource allocation. JEL Codes: I20, I24.

Schools face important policy tradeoffs in monitoring and managing student behavior. Strict discipline policies may stigmatize suspended students and expose them to the criminal justice system at a young age. On the other hand, strict discipline acts as a deterrent and limits harmful spillovers of misbehavior onto other students. This paper estimates the net impact of school discipline on student achievement, educational attainment and adult criminal activity. Using exogenous variation in school assignment caused by a large and sudden boundary change and a supplementary design based on principal switches, we show that schools with higher suspension rates have substantial negative long-run impacts. Students assigned to a school that has a one standard deviation higher suspension rate are 15 to 20 percent more likely to be arrested and incarcerated as adults. We also find negative impacts on educational attainment. The negative impacts of attending a high suspension school are largest for males and minorities.