Abstract
The effects of family income, parents' education, maternal employment, and family composition on the IQ scores of 4- and 7-year-olds are estimated, using a sample of more than 3000 children. The results suggest that childhood cognitive development plays a minor role in the intergenerational transmission of wealth, and that programs to supplement family incomes would not have much effect on children's IQ scores. Compensatory education is shown to have had significant but short-lived benefits for sample children. Implications for household production and confluence models of intellectual development are also examined.
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