Abstract:This study examines the relationship between the proportion of school-choice students in a class and the academic development of non-school-choice students, utilizing random class assignment data from the baseline of the China Education Panel Survey (2013-2014). The findings show that a higher proportion of school-choice students in a class directly reduces the academic engagement of non-school-choice students on both schooldays and weekends, subsequently leading to a decline in their academic performance. The heterogeneity analysis reveals that the increase in the proportion of school-choice students primarily affects the English performance of non-school-choice students, with a more pronounced negative impact on male non-school-choice students. Additionally, the longer the interaction between school-choice and non-school-choice students, the more significant the adverse impact on the academic development of non-school-choice students. Furthermore, compared to "school choice by housing", the increase in students enrolled through "power and money" methods is more detrimental to the academic development of non-school-choice students. By examining the peer effects of school choice, this paper provides new empirical evidence supporting the implementation of the "nearby enrollment" policy during compulsory education.