Significant racial and ethnic achievement gaps exist between students in the U.S. by elementary school, although the underlying causes for these achievement gaps differ. One factor for racial/ethnic achievement gaps is between-group differences in socioeconomic status (SES), particularly exposure to poverty. Moreover, other factors contributing to…

Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use two simulated instrumental variables strategies to estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, non-linear changes…