RT Journal Article SR Electronic T1 Permanent Income and the Black-White Test Score Gap JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 510 OP 544 DO 10.3368/jhr.48.3.510 VO 48 IS 3 A1 Rothstein, Jesse A1 Wozny, Nathan YR 2013 UL http://jhr.uwpress.org/content/48/3/510.abstract AB Analysts often examine the black-white test score gap conditional on current family income. We describe a method for identifying the gap conditional on the family’s permanent income. Current income explains only about half as much of the black-white test gap as does permanent income, and the gap among families with the same permanent income is only 0.2 to 0.3 standard deviations in two commonly used samples. When we add permanent income to the controls used by Fryer and Levitt (2006), the unexplained gap in third grade shrinks below 0.15 SDs, less than half of what is found with their controls.