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The paper estimates the response of student truancy and long-run labor market outcomes to discipline policies in middle and secondary school. Simultaneous determination of student behaviors and school policies motivates an instrumental variables strategy. Because judicial climate influences administrators' fear of discipline-related lawsuits, measures of judicial-legal climate at the state-level court are used as instruments for local discipline policies. Results indicate that the state-level judicial-legal climate does appear to influence administrators' discipline policies; that students appear to be truant less often when discipline is stricter; and that school and long-run labor participation outcomes appear higher for students from schools with stricter discipline policies.