The effect was evident across social classes, suggesting that better-off families are no more able to overcome the penalties which August-born children suffer than poorer ones.
Claire Crawford, programme director at IFS and an author of the report, said: "All these [factors] are associated with a greater chance of being in work and having higher wages later in life. This suggests that August-born children may end up doing worse than September-born children throughout their working lives simply because of the month in which they were born."
The differences were evident as early as age seven, when August-born children were two to three times more likely to be judged below average by their teachers in reading, writing and maths, and at least twice as likely to report being bullied or to say they were unhappy at school.
Other studies have shown a link between being born near the start of the school year and becoming a professional sportsperson.
A child born at the start of the academic year has almost 12 months growth ahead of their classmates.
The researchers said there was evidence that parents strive to compensate for the disadvantage suffered by their summer-born children, by spending more time at home helping them to learn. But their efforts, it seems, cannot close the gap.
* The results of this study are based on northern hemisphere seasons. New Zealand's academic year starts in February (summer). Autumn begins in March.
- INDEPENDENT