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This study estimates how students suffering from parental conflicts could affect their classmates in Chinese middle schools. We show that children with quarreling parents are more likely to misbehave. Negative spillovers from these potentially troubled peers concentrate on students from economically disadvantaged families. With greater exposure to classmates from troubled families, disadvantaged students would score lower in academic tests, commit more disciplinary infractions, feel less satisfied with being at school, and spend less time on after-school studying activities. In contrast, we find limited effects on advantaged students. These results imply a persistent inequality passing through generations.

Negative spillovers from parental conflicts and implied inequality: evidence from China