Long-Term Contextual Effects in Education: Schools and Neighborhoods

This paper estimates the long-term impact of growing up in better neighborhoods and attending better schools on educational attainment. First, I use a spatial regression-discontinuity design to estimate school effects. Second, I study students who move across neighborhoods in Montreal during childhood to estimate the causal effect of growing up in a better area (total exposure effects). I find large effects for both dimensions. Combining both research designs in a decomposition framework, and under key assumptions, I estimate that 50–70 percent of the benefits of moving to a better area on educational attainment are due to access to better schools. (JEL H75, I21, R23)