The report, The Pupil Premium: Assessing the Options, says the premium is unlikely to be enough to encourage schools to actively recruit more disadvantaged pupils.
"It may lead to a small reduction in covert selection by schools, but is unlikely to significantly reduce social segregation between schools," says the report.
The report also looked at a range of options for allocating the pupil premium.
The model favoured by the Conservative Party of creating a single national funding formula that includes a pupil premium is seen as unfair by the IFS.
Around one in 10 schools could see their budgets cut by 10 per cent through this method, says the report.
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