What's the Role of Schooling in Juvenile Crime?

This paper analyzed students' discipline behavior at school and its relationship with their crime outcome afterward. The analysis is based on a sample of 98863 students in Texas Public School System of U.S. who were at Grade 5 in school year 2001. To control for non-randomness of class assignment, "additional" fixed effect is added. The result shows that for those who have a discipline breaching history, exposure to bad or "criminal" peers could increase the probability of breaching again in the future. However, for those who do not have such history, the exposure, on the contrary, could lower their probability of breaching the discipline. I also find that for those dropping out during high school, "bad" peer exposure could increase ever-discipline-violators' probability of being arrested in the future, while this kind of exposure makes never-violators less likely to be arrested. And this effect is especially salient for the most serious discipline violations.