Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids

TLDR

Externalities from children of troubled families are widely perceived to be significant, but measurement is hampered by data and methodological limits. The study estimates the negative spillovers of children from troubled families. It uses a unique dataset linking school records to domestic violence cases. Children from troubled families significantly lower peers' reading and math scores and increase classroom misbehavior, and these effects persist after controlling for selection and common shocks. JEL codes: D62, I21, J12, J13, K42.

Abstract

There is a widespread perception that externalities from troubled children are significant, though measuring them is difficult due to data and methodological limitations. We estimate the negative spillovers caused by children from troubled families by exploiting a unique dataset in which children's school records are matched to domestic violence cases. We find that children from troubled families significantly decrease the reading and math test scores of their peers and increase misbehavior in the classroom. The achievement spillovers are robust to within-family differences and when controlling for school-by-year effects, providing strong evidence that neither selection nor common shocks are driving the results. (JEL D62, I21, J12, J13, K42)