The Economic Journal

We study the effect of separate preparatory language learning classes on the academic outcomes of primary school-aged immigrant children in Germany compared to their direct integration into regular classrooms. Using administrative panel data and leveraging idiosyncratic assignment of refugee children to neighbourhoods, and, consequently, schools, as well as preparatory class roll out over time, we find that primary school-aged refugees attending a preparatory class perform significantly worse on fifth-grade standardised tests and are slightly less likely to pursue an academic secondary track. While limited to short-term outcomes, our results indicate that preparatory classes could impede early academic integration by clustering migrant peers, highlighting the need to consider complementary approaches to reduce achievement disparities.