How Much Does Family Income Matter for Student Outcomes?

Affordability

How Much Does Family Income Matter for Student Outcomes?

By Daniel Mollenkamp     Oct 14, 2024

How Much Does Family Income Matter for Student Outcomes?

When Eve, a mother in Colorado, received a legal settlement, she found herself suddenly flush.

She drove over to the office of Eric Dearing, who was working with her as a family advocate for Head Start, and she gave him a shirt. Even though the shirt wasn’t his style, and he never wore it, he kept it in the closet. That was one of the few times that he’d seen a family, through “pure luck,” get a spike in income.

The change in Eve, when she went from receiving help to giving gifts, was palpable. “She was so excited and proud and suddenly full of this hope,” says Dearing, who is now a professor at Boston College.

Moments like that are rare these days. Social mobility in the U.S. is stagnant, with income inequality rising. Plus, the ability of people to move up in the world seems to decline with age, as their status gets set. It can cast doubt on the idea that schools prepare students to have good lives and raise questions about whether the country is a poverty-sustaining machine.

This may be getting worse, according to one researcher, whose recent study found that what matters for student outcomes isn’t so much money itself, but the number of supportive learning chances that a person gets.

But rare or not, that experience with Eve stuck with Dearing like it was pinned somewhere in his brain. How much does it matter when families gain income if they've been living in poverty, Dearing wondered. And why do all the high-quality programs out there seem to make such a little dent in boosting education achievement for students from low-income backgrounds?

It Adds Up

Years later, Dearing tried to tackle these questions. His answer? Some students just receive much fewer chances to thrive.

That’s what a new study, published in the journal Educational Researcher, suggests. The study aimed to figure out how access to opportunities accrued over time for students, and whether they explain the link between how much money their parents made — when the students were in early childhood — and how their lives turned out. To do this, the researchers pulled federal data that followed 814 students from birth until the age of 26. Those students lived in 10 cities from around the U.S.

What did they find? It’s about “opportunity gaps.” For example, from birth through the end of high school, children from high-income families had six-to-seven times as many chances to learn than those from low-income families. Middle-income families had four times as many chances as low-income families.

According to an author of the study, that means family income is indirectly related to how far a student pursues education or how much money they make in their mid-20s. What really matters is access to “educational opportunities,” or how often they find themselves in supportive learning environments, whether that’s in high-quality child care when they are young, in a home that has toys, puzzles and caregivers to support learning, or in high-quality school and after-school programs. So income helps, but primarily because it leads to greater access to good learning opportunities.

The study was descriptive, Dearing notes, so it can’t technically prove that the accumulation of opportunities “caused” higher educational achievement. But that story is consistent with their research, he adds. The paper also didn’t look into how the timing of learning opportunities — say, whether they occurred in early childhood or in high school — might make a difference.

But from the perspective of the researchers, what matters is the cumulative effect of those chances over time.

Some children are experiencing opportunities throughout their lives, in each of the settings in which they're living and growing — at home, in child care, at the school — and other children are, if they're lucky, experiencing an opportunity to be in a highly enriching context in one of those settings, Dearing says. And that has tremendous implications for solving achievement differences between children growing up poor and children growing up in higher-income families, he adds.

Given this, it shouldn’t be surprising that positively powerful programs such as high-quality preschool make only a small dent in how those children's lives turn out, Dearing says.

Translating these insights into more chances for students to thrive is tough.

“The inequity is extreme, and so it's going to take extreme measures to end that,” Dearing adds. And by extreme, he means structural. Success in education requires high-quality instruction, but that alone is not enough, he says. What matters when it comes to changing students’ lives is sustained quality. The sum is greater than the parts.

A consequence: Teachers alone, while crucial, can’t control all the factors here. The answer may lie more in support systems for students, Dearing says, pointing toward the community school model and support programs such as City Connects at Boston College. These models claim to support the “whole child” by building a network that can assist with needs outside of the classroom, such as connecting families to food banks when a child might be hungry or to a free eyeglasses clinic. In some sense, these models use the schools as “hubs” for supportive learning environments while letting teachers focus on the education component, Dearing says.

The Land of Opportunity?

Efforts to staunch inequality could also soon see a political push: Democratic nominee Kamala Harris’ presidential campaign has outlined a plan for “economic opportunity,” including expansions of earned income tax credits, which it argues will breathe new life into the American middle class.

But in the meantime, circumstances may be getting starker.

Since 1991, when the students trailed by the study were born, the country has seen rising inequality and, in some sectors, stagnant wages. This may have accelerated or exaggerated the effects noted in the study. It’s entirely possible that we have underestimated how big the opportunity gaps are today, Dearing says. Had the children been born a decade later, it’s possible the students they studied would have had a wider chasm between opportunities, even between middle-class and upper-income families, he says.

There have also been some positive developments, though. There’s more public preschool these days, and there’s been an increase in the earned income tax credit, he says.

What’s more, there are still research questions to answer.

A previous study authored by Dearing showed that early childhood “opportunities” could compensate for poverty, lifting students’ educational attainment.

But if the research were being conducted today, Dearing says he would pay closer attention to cultural differences that might boost students’ life outcomes in the absence of money. For instance, in some Black communities caregiver roles often extend beyond the parents, with other family members like grandmothers playing a big role in childrens’ home lives and what learning opportunities they have there. But researchers have overfocused on “nuclear family” roles, and therefore may have a slightly misleading picture, Dearing says.

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