Do Student LLMs Inherit OOD Robustness? Invariance-Weighted Distillation for Reliable Knowledge Transfer

Dileesha Kannangara, Sanghamitra Dutta

Knowledge distillation (KD) aims to compress high-performance teacher LLMs into lightweight students. However, distilled students often exhibit substantial performance degradation in out-of-distribution (OOD) settings, a critical gap that remains underexplored. We identify two compounding mechanisms causing OOD performance degradation: (1) data spuriousness: students can learn spurious correlations in the distillation dataset over genuine causal relationships; and (2) teacher capability: standard KD treats all samples uniformly, ignoring whether the teacher is guided by causal features or misled by spurious shortcuts on a given sample. To address these challenges, we propose Invariance-Weighted Distillation (IWD), a theoretically grounded framework that dynamically reweights training samples using an estimate of the teacher's causal reliance derived from prediction invariance across multiple synthetic environments. IWD perturbs spurious cues while preserving core semantics, assigning higher distillation weights to samples whose teacher predictions remain invariant, indicating greater reliance on causal rather than spurious features. We theoretically show that IWD reduces the…