A study, "Early-Childhood Poverty and Adult Attainment, Behavior and Health," reported in Education Week (March 3, 2010) concludes that living in poverty before age 5 can have a critical impact on children's earnings trajectories 30 years later. (The original study report can be found in Child Development, January/February 2010, Volume 81, Number 1, Pages 306–325.)
"Greg J. Duncan, an education professor at the University of California, Irvine, and his colleagues analyzed data on a nationally representative sample of people born between 1968 and 1975. More so than any other periods of childhood, the researchers found, poverty in early childhood was strongly linked to having lower earnings and fewer work hours 30 years later. The researchers estimate that a $3,000 annual increase in family income between a child's prenatal year and 5th birthday is associated with a 19 percent increase in earnings and an additional 135 work hours a year for that child down the road."
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