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Eric A, Hanushek ; Laura M, Talpey ; Paul E, Peterson ; Eric, Hanushek ; Ludger, Woessmann. (2020) Long-Run Trends in the U.S. SES-Achievement Gap.
In: CESifo Working Paper Series. RePEc:ces:ceswps:_8111.
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The correlation between the SES index and reported family income is displayed in Appendix Table A6. The two variables are strongly but not perfectly correlated. Interestingly enough, at 0.66 the SES index is more highly correlated with the average of the annual earnings estimates obtained in 1987 and 1991 than with either of the annual estimates, suggesting that the average is a better measure of permanent income, a concept similar to socio-economic status.37 37 Using 2002 ELS data, where family income is available only on the base year survey (2001 income), the correlation between the SES index and reported income is 0.503.
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