Do Rich Kids Do Better In School? (Findings Based on Toronto High School Students)
Daniel Willingham, Professor of Psychology at the University of Virginia, confidently claimed in his blog recently that wealthy kids do better in school that poor kids. I wanted to find out if he is right.
Rich kids performed better on the literacy test.
I studied high schools in Toronto to test his claim, and it turns out, Willingham is absolutely right. High schools from wealthy parts of Toronto tend to do better than high schools from poor parts of Toronto. Check out these plots below.

Pearson correlation coefficient: 0.3336512

Pearson correlation coefficient: 0.3735437
As you can see, as the household income increase, the passing rate of the test increases as well.
The following two plots have normalized the passing rate of individual wards.

Pearson correlation coefficient: 0.4848854

Pearson correlation coefficient: 0.4574223
The correlation is even stronger after passing rate has been normalized to individual wards.
Procedure of the study
Here’s a quick summary of how I generated the plots. I first got the literacy test result of Toronto high schools, and categorized each school based on wards they belong. I assigned the average and median household incomes of individual wards in Toronto. The data has been organized into .csv file using Excel. Plots and correlation coefficients were generated using R [1].
I decided to study Toronto for no other reason than that it’s a city that I’m most familiar with. Toronto also happens to be an interesting choice because it is often viewed to be more egalitarian in comparison to other major North American cities [2].
Possible Errors
-Household income data of a given wards is not household income data of students’ parents.
-Students living in ward X may attend a school in ward Y.
-The data is from 2005~2006.
Why not pour more money into education?
A typical response to the problem of this nature is to simply insist that the government must put more money into education. While I agree that this will help underfunded schools in the short term, whether or not this has formidable influence on student’s performance in school is still very much debatable.
Hopefully, we can look to our southern neighbour, and learn from their mistake. Contrary to popular belief, US is one of the biggest spender when it comes to education. OECD reported in 2011 that only Switzerland spends more money on education out of 65 countries. The graph below shows how increased spending on education over last 40 years did nothing, absolutely nothing to make any tangible improvement on reading, math and science scores of students.

I think it is important to notice that household income is only one of many causes that influence students’ performance at school. Household income can be more aptly seen as a numerical indication of many other factors such as educational background of parents, mindset of parents and students, availability of parents for students, quality of teachers in the neighbourhood and so on. Since there are so many variables that affect the performance of students, simplistic solutions like “more funding for schools” will not work.
Perhaps, more helpful solution would be attempting to emulate high schools from poor area that still had high passing rate.
[1] Check out this tutorial to find out about generating basic plots for correlations.
[2] This claim itself must be verified.