Volume 4, Number 2 (Spring) 1969
Masters, Stanley H. 1969. "The Effect of Family Income on Children's Education: Some Findings on Inequality of Opportunity." Journal of Human Resources 4(2):158-175.
In this paper an attempt is made to estimate the degree of inequality of educational opportunity at the secondary school level. Data from the 1/1,000 sample of the 1960 Census are used to estimate the probabilities of falling behind in school or dropping out for children from different family backgrounds. For children whose parents have little education or income, the probabilities are more than 20 times greater than for children from well-to-do families where both parents have graduated from high school. The determinants of the dropout and retardation rates are also investigated, with the discussion focusing on the possible effects of new transfer programs, such as the negative income tax. While the short-run effects are likely to be quite small, the long-run effects may be important, especially for the Negro retardation rate.
The author is Assistant Professor of Economics at Rutgers--The State University of New Jersey. This study was begun at the Brookings Institution where helpful comments were made by Jesse Burkhead, Henry Levin, Alex Maurizi, Stephan Michelson, and Michael Taussig. At Rutgers, Monroe Berkowitz, C. Harry Kahn, Collette Moser, Jeffrey Schaefer, Joseph Seneca, Richard Burkhauser, and other participants in two research seminars contributed many useful suggestions. Glen Cain provided valuable suggestions during the initial stages of the study and again at the final draft. While at Brookings the work was financed by the Department of Health, Education, and Welfare. A grant from the Rutgers Research Council helped with later expenses. The computer programming was done first by the Assist Corporation and then under the supervision of Kate Tallmadge at Rutgers. Without this very competent assistance, the study never would have been completed.
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