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Suspended from Work and School? Impacts of Layoff Events and Unemployment Insurance on Student Disciplinary Incidence

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Listed:
  • Acton, Riley

    (Miami University)

  • Khafaji-King, Jo Al

    (New York University)

  • Smith, Austin C.

    (Bates College)

Abstract

We examine the impact of local labor market shocks and state unemployment insurance (UI) policies on student discipline in U.S. public schools. Analyzing school-level discipline data and firm-level layoffs in 23 states, we find that layoffs have little effect on discipline rates overall. However, effects differ across the UI benefit distribution. At the lowest benefit level ($265/week), a mass layoff increases out-of-school suspensions by 4.5%, with effects dissipating as UI benefits increase. Effects are consistently largest for Black students - especially in predominantly White schools - resulting in increased racial disproportionality in school discipline following layoffs in low-UI states.

Suggested Citation

  • Acton, Riley & Khafaji-King, Jo Al & Smith, Austin C., 2023. "Suspended from Work and School? Impacts of Layoff Events and Unemployment Insurance on Student Disciplinary Incidence," IZA Discussion Papers 16423, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16423
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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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