The Effects of School Consolidation on Students and Teachers: Evidence from an Underperforming System
Gustavo J. Bobonis, Reza Moradi, Orlando J. Sotomayor, Jeancarlo Vélez Lebrón, and Jessica Wagner
2025
Work in Progress
States and school districts across the US have consolidated schools in response to underused buildings and pressure to reallocate scarce resources. We study over 600 consolidations of public elementary and middle schools in Puerto Rico between 2010 and 2018, asking what determines which schools close and what follows for displaced students and their teachers. Closure decisions appear unrelated to baseline academic performance, with the strongest predictors being low aggregate enrollment and small class sizes. Displaced students leave the public system at higher rates, and, unlike in earlier work, that gap does not close in the years after displacement. Using a matched event study that controls for enrollment histories, we find no persistent effects on math or language test scores. Students displaced from underperforming schools gain, and those gains coincide with access to teachers with higher baseline value added. At receiving schools the two channels offset: displaced peers lower achievement and raise exit, while displaced teachers raise achievement. Together, the results suggest that cost-saving consolidations need not harm achievement when closures happen near adequate alternatives.