Permanent income and the black-white test score gap
By: Jesse Rothstein, Nathan Wozny
Contributors: Wozny, Nathan N., 1980-; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17610; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17610.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Analysts often examine the black-white test score gap conditional on family income.  Typically only a current income measure is available.  We argue that the gap conditional on permanent income is of greater interest, and we describe a method for identifying this gap using an auxiliary data set to estimate the relationship between current and permanent income.  Current income explains only about half as much of the black-white test score gap as does permanent income, and the remaining gap in math achievement among families with the same permanent income is only 0.2 to 0.3 standard deviations in two commonly used data sets.  When we add permanent income to the controls used by Fryer and Levitt (2006), the unexplained gap in 3rd grade shrinks below 0.15 standard deviations, less than half of what is found with their controls"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 1/17/2012.

Includes bibliographical references.

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