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-school diploma, remain unchanged in the treated districts. Thus, the direct impact of SEZs on drop-out rates is negligible in the baseline. 5. Effect of Multiple SEZs This section investigates agglomeration effects determined by the intensive margin of the SEZ program participation or the number of SEZs in treated districts. As demonstrated in Section 2.3, several districts host more than one SEZ, suggesting that agglomeration effects may be at play. Namely, treated districts, on average, were hosting 2.4 SEZs at the end of the sample period. Given potential