Briefing • 31 July 2014

Briefing 41: Increasing family incomes improves children’s achievement in school

Raising household incomes by £1,000 would lead to better outcomes for poorer children than spending an extra £1,000 per child on schools

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Explaining the data

Academics from the London School of Economics analysed over 30 different studies from across the world measuring the effects of income on children’s school achievement, cognitive development and other health and social issues. These studies found an improvement of between 5% and 27% of a standard deviation in children’s cognitive outcomes associated with an increase in their families’ income equivalent to about £900. This represents similar value to the estimates of an increase in £1,000 spending per child on schools. To read the full report, visit http://www.jrf.org.uk/publications/does-money-affect-childrens-outcomes

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