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The Income–Achievement Gap and Adult Outcome Inequality

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  • Eric Nielsen

Abstract

This paper uses scale-independent methods to contribute to the debate about how academic achievement differences between advantaged and disadvantaged youth have changed over time in the United States. Ordinal methods reveal an unambiguous decrease in the reading gap and an ambiguous change in the math gap between youth from high- versus low-income households from 1980 to 1997. Anchoring these test scores to later-life outcomes in the 1980 cohort suggests that these achievement shifts correspond to a convergence of $30,000–$50,000 in present-value lifetime income and 0.02–0.05 in high school and college completion rates for youth from high- versus low-income households.

Suggested Citation

  • Eric Nielsen, 2025. "The Income–Achievement Gap and Adult Outcome Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 60(4), pages 1217-1252.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:4:p:1217-1252
    Note: DOI: https://doi.org/10.3368/jhr.0519-10220R3
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    File URL: http://jhr.uwpress.org/cgi/reprint/60/4/1217
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    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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