Before or After the Bell?: School Context and Neighborhood Effects on Student Achievement

This paper explores the relative effects of school and neighborhood characteristics on student achievement in Texas. Previous empirical studies have estimated one of these effects in the absence of controls for the other, leading to potentially misleading results. School variables are more robust and explain a greater degree of the variance in test scores than neighborhood characteristics. Neighborhood level variables, as a group, are statistically significant even in the presence of school variables. The particular pattern of effects varies by the manner in which the school context was controlled, by poverty status, move status, and location in the conditional achievement distribution. But neighborhood always mattered. Even if neighborhood conditions are less robust than school context effects, concern about neighborhood conditions is still justified. Reducing the concentration of poverty and economic segregation may be the easiest way to decrease the "savage inequalities" that exist between schools.