This paper focuses on mechanisms of �peer interactions� among native and non-native students. We present a theoretical framework based on Lazear (2001) education production model and on the �sub-cultural� sociological theory and we test the theoretical predictions exploiting a dataset of Italian junior high school. Results show that non-native school share has small and negative impacts on Language test scores of natives� peers, while it does not significantly affect Math test scores. The negative effects to natives� attainment are concentrated in schools characterized by low levels of non-natives� isolation or where non-natives� school share is above 10%.
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