An Investigation Into Relationship Between People”S Low Income And Their Education Level

Posted on March 21, 2023 by Cheapest Assignment

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Literature review

The current topic focuses on the investigation that is carried out in finding out the relationship between people with low income and their education level. The main purpose of this literature review is to examine the literature in finding out the impact of the socioeconomic status of parents on the academics of students(Ball, 2016). The present issue is found to be very significant since the relationship between the economic status and the education of students will be providing important understandings regarding the issue for both the governments and the educational leaders for taking the initiative in making improvements in this area.  As indicated by Sirin (2005) there are many indicators of socioeconomic status this literature review will be considering and focussing mainly on the relationship that exists between the low-level income of the parents and the educational level of children.

A substantial literature has engrossed on the effects related to the outcomes of the parental background for their children like the education, cognitive skill, and subsequent income (for a review, see Black and Devereux (2011)). It can be said in simple words that people with high income can be highly educated and can create a better environment for their children (see for example McLachlan et al. (2013)).

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It is commonly shown that children who are brought up in conditions that are less favorable like low-level income will be obtaining less education regardless of the huge financial returns of schooling (Heckman and Masterov (2005). However, the correlation between the education of children and the low-level income of the parents is quite high. (Björklund and Salvanes (2011). Although behind such intergenerational correlations, the transmission mechanism is not known. Several contributions have been reviewed by Krueger (2004) in support of the view that financial restrictions will impact educational attainment significantly. However, it is suggested by Carneiro and Heckman (2004) that the parental income that is present currently will not explain the educational choices of children. Yet the fixed effects of the family that is contributing to the permanent income like the educational level of parents will have a positive role in that(Chevalier et al., 2013).

To date, an attempt was made by researchers in identifying the exogenous effect of parental income on their child’s education.

Commonalities or similarities of Poverty and its effects on education

Poverty or low-level income will always remain a stubborn fact of life, whether it is a rich or poor country. More specifically the poverty that is families with low income has become a continuing concern over the education of their children. In the year 1989, unanimously the Canadian House of Commons voted for eliminating poverty among the children of Canada by the end of the year 2000. However, the fact is that in the year 2003, one child out of six was still living in the poverty(Cingano, 2014).

Besides that, the Canadian government was not at all successful in eliminating the low-level income effect on children’s education. But from the past few decades, it has been noticed that the injustice of the incomes in the family in Canada has grown and for some families, the complexity of low-level income has increased along with that. This is confirmed by Canadian research that low-level income will be having an impact on the behavior, achievement, and retention of the student in the school which ultimately impacts their education.

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The low-level income disadvantage has been persistent and was hurting the educational outcomes of most Canadian children. In the mid-1980s, research was conducted from the Ontario Child Health Study, which reported some of the noteworthy associations between low income and academic functioning along with health problems. Since that time, systemic measures have been developed by Canada, which have permitted in getting track of the impact of a diversified group of children, families, and community factors on the well-being of children(Ferguson, Bovaird& Mueller, 2007).

One of the major areas that have been influenced by the income of the family is educational outcomes. In this literature, the effects of low income on the educational level of the individual have been focused on in Canadian research.

The data from the research have been placed from the perspective of the research carried out in rich countries. It has been concluded by giving some suggestions that practitioners and advocates need to work in the direction of reducing the negative influence of low income on the educational level of their children.

Differences in poverty and its influence on the educational level

According to the article Trends in income inequality and its impact on economic growth that has been cited by F Cingano in the year 2014, it has been researched that the rise and fall of overall income inequality might have an impact on economic performance which eventually will affect education.

Corresponding data has been gathered over the past 30 years where the econometric analysis is suggesting that inequality in income will have a negative and significant impact statistically on the following growth. More specifically the important thing that matters most is the gap that exists between the households with low income and the remaining population(Hirsch, 2007). Contrary to this there is no evidence found which states that individuals with higher incomes, those who are away from the remaining population will be harming the growth. This paper is closely related to the literature review in which the human capital accumulation theory has been evaluated.

According to this, it has found evidence for human capital as a network by which growth might be affected by inequality. The data have been analyzed which shows that increased disparities in income will depress the development of skills among individuals that are with a poor educational background in terms of both such as the amount of education that is attained and the quality. However, the educational levels of people who are from wealthy backgrounds are not anyways affected by inequality.

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Often the motivation is not received by the children who are from families with low income also they will not learn the social skills that are necessary for them to prepare for school. The characteristic problems are parental differences, more common changes in the principal caregivers, lacking supervision, and role modeling will be poor. More commonly the parents of such kinds of children will lack support.

An association was also demonstrated by the Canadian studies between the households of low income and the decreased willingness to school education. It was concluded from the report produced by Thomas (2007) that children who belong to households of lower income will significantly score lower on the measures of communication skills and vocabulary, knowledge related to numbers, copying and using of symbols, concentration abilities, and cooperative play with fellow mates when compared with children from households with higher income.

It has been found by Janus et al that school with a leading part of children with low willingness to school has been found from the areas of high social risk in which poverty is also included. It was established by Willms that children from households of lower economic status were found to score less on an open vocabulary test in comparison to children of higher economic status. Hence, it is evident that poor children will arrive at school at a perceptive and behavioral disadvantage (Hirsch, 2007. However, schools are not in a position of equalizing this gap. For example, the research that is conducted by The Institute of Research and Public Policy (Montreal, Quebec) has shown that the difference between students of high and low economic status is evident from grade 3. Children belonging to the area of low-income level were less likely to pass the standard test of grade 3(Ferguson, Bovaird& Mueller, 2007).


The main purpose of the current study is to discuss the influence and the relationship between lower incomes, and economic status concerning educational level. In addition to this, it also affects in developing the communication skills, learning abilities, performance in academics, and school dropouts.

By investigating the relationship that exists between economic status and educational outcome or performance it can be noticed that many schools and institutions can respond to the tasks that were presented by the regional poverty. In this study, a set of strategies and programs has been elaborated, which can be used by the administrators and the educators of schools for developing and improving the learning of low-income children, particularly in areas of high poverty.

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According to the literature, the influence of income of parents and education on the schooling of their children researched by Arnaud Chevalier, Colm Harmon, Vincent O’ SullivanEmail author and Ian Walker (2013) the amount of current income will always remain significant even after including some of the measures of permanent income in which it is indicated that some of the children are forced to limit financially while making decisions in their educational level.

According to the article researched by Stephen J. Ball on Education, Justice, and Democracy: The Struggle over Ignorance and Opportunity it states that the current education policy keeps declining as there is a rise in poverty and inequality.

It forms a basis and outlines a new beginning of the education system in which there is an involvement of the fundamental shift of the system of education from the state that is driven by economic necessities to the one that gives importance to the political and social conditions which finally should be a democratic education system instead of an economy based education. This kind of education is known to be a system of hope and happiness and more specifically a social renewal.

The study in the literature review also examines the data that has been collected from Canadian schools from different areas to that of international schooling to see how the data corresponds to the already existing scholarly research. In addition to this, it also finds out the relationship between the low-level income families and their education level and their performance measures in school, which might shed the light on how economic status is impacting the education of Canadian children.

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While it is aware most of the people that there exists a large gap between success in academics in families with low-income status and families with that high-income status. A vigorous debate was made over why such kind of gap exists. Regardless of the number of attempts made by public officials for relieving some of the challenges in education for families with low income the sum of students stricken by poverty and who are still doing poorly in school is much more significant.

From the studies, it has been shown that students coming from families with financial limitations of low income are having incomplete responsibility for their low performance in academics in addition to this there are also some other factors such as physical and psychological which are contributing to the high rate of failure in academics among the students with low-income background(Hirsch, 2007). Also, the fact is that the income of the family and the ratio of families which are below the level of the poverty line were found not to have a major correlation with the success in education. However, it has been shown that various other factors are required to be considered while looking for the underlying reasons behind the gap in achievement. For the past few decades, the unfortunate reality is the income gap that has extended between Canadian families with low income. Even the schools were not in a position of balancing this gap.

From the research, it has been noticed that children who have grown in a low-income status were disadvantaged in their educational level. This is found to be of a wider extent as people from households of low economic status are less likely to get a good education. Also, there is a separate correlation existing between success and poverty. In education closing the opportunity, gap is a significant part which is the cause of long-term disadvantages.

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Ball, S.J., 2016. Education, justice, and democracy: The struggle over ignorance and opportunity. In Reimagining the Purpose of Schools and Educational Organisations (pp. 189-205).Springer International Publishing.

Black SE, Devereux PJ 2011: Chapter 16 – Recent Developments in Intergenerational Mobility. In Handbook of Labor Economics, vol Volume 4, Part B. Edited by: David C, Orley A. Elsevier; 2011:1487–1541.

Björklund A, Salvanes KG 2011: Chapter 3 – Education and Family Background: Mechanisms and Policies. In Handbook of the Economics of Education, vol Volume 3.2011 edition. Edited by: Eric A, Hanushek SM, Ludger W. Elsevier; 201–247.

Carneiro P, Heckman JJ 2004: Human Capital Policy. In Inequality in America. Edited by: Heckman JJ, Krueger AB. MIT Press, Cambridge;

Chevalier, A., Harmon, C., O’Sullivan, V. and Walker, I., 2013. The impact of parental income and education on the schooling of their children.IZA Journal of Labor Economics, 2(1), p.8.

Cingano, F., 2014. Trends in income inequality and its impact on economic growth.

Ferguson, H.B., Bovaird, S. and Mueller, M.P., 2007. The impact of poverty on educational outcomes for children.Paediatrics & child health, 12(8), pp.701-706.

Hirsch, D., 2007. Experiences of poverty and educational disadvantage. Joseph Rowntree Foundation.

Heckman JJ, Masterov DV 2005: Skill Policies for Scotland. In New Wealth for Old Nations: Scotland’s Economic Prospects. Edited by: Coyle D, Alexander W, Ashcroft B. Princeton University Press, Princeton, and Oxford; 119–165.

Janus M, Walsh C, Viverios H, Duku E, Offord D. 2007 School readiness to learn and neighborhood characteristics. <>

Krueger AB 2004: Inequality, Too Much of a Good Thing. In Inequality in America: What role of human capital policies? Edited with an introduction by Benjamin M. Friedman. Alvin Hansen Symposium on Public Policy series. Edited by: Heckman JJ, Krueger AB. MIT Press, Cambridge, and London; 1–75.

McLachlan R, Gilfillan G, Gordon J 2013: Deep and Persistent Disadvantage in Australia. Australian Government Productivity Commission Staff Working Paper. Australian Government Productivity Commission, Canberra, Australia;

Sirin, S.R. 2005. Socioeconomic status and academic achievement: A meta-analytic review of research. Review of educational research, 75(2), 417-453.

Thomas EM 2007. Readiness to learn at school among five-year-old children in Canada.<>

Willms JD 2007.Ten hypotheses about socioeconomic gradients and community differences in children’s developmental outcomes.<>

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