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This study examines the impact of school socioeconomic composition (SEC) on academic and psychosocial behaviors of elementary school students. Using a nationally representative dataset, the research investigates three theoretical mechanisms (institutional, Frog Pond, and selection bias) to understand the association between SEC and student outcomes. Through multilevel modeling and student fixed effect modeling, the study finds that while there are initial associations between SEC and certain outcomes, these effects become non-significant after accounting for selection bias and controlling for school resources and practices. The study highlights the importance of school resources and practices in explaining student development and emphasizes the need for addressing selection bias in future studies.