Analysis of the Neighborhood Effect in School Performance and Impact on Inequality

Although Latin American countries have seen major advances in coverage and school attendance, there are still important geographical differences in educational quality, leading to inequalities. The objective of this study is to determine the influence of geographical context on academic achievement among primary school students in Chile. The methodology involves the estimation of spatial econometric models, specifically, an analysis of spatial dependence including the Moran index, New-GI tests and substantive and residual autocorrelation tests. The data used correspond to standardized test scores obtained from 4030 schools in Chile between 2014 and 2017. The results demonstrate the existence of spatially dependent effects on academic performance for both reading and math. The main indirect spatial effects arise from the concentration of indigenous and immigrant populations. There is also evidence of high spatial inequality in educational quality, as measured through Education Quality Measurement System (SIMCE) tests.