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I study the effects of charters on student racial segregation, identifying a novel mechanism:
the assignment of white and nonwhite students to regular classrooms within their
school-grade. Exploiting almost 100 entries of elementary charters in North Carolina
from 1997 to 2015, I show that the announcement of an opening significantly increases
classroom segregation within public schools nearby, relative to schools farther away,
especially within non-majority-white schools and for charter openings that enroll a relatively
large share of white students. Accounting for classrooms is unlikely to reverse
the literature’s conclusion that the charter effects on student segregation are modest
in magnitude.