The DOI matches its Crossref record; 10 of the 10 references it cites were found in a registry or an index.
What Linear Estimators Miss: The Effects of Family Income on Child Outcomes
Abstract
We assess the implications of nonlinearity for IV and FE estimation when the estimated model is inappropriately assumed to be linear. Our application is the causal link between family income and child outcomes. Our nonlinear IV and FE estimates show an increasing, concave relationship between family income and children's outcomes. We find that the linear estimators miss the significant effects of family income because they assign little weight to the large marginal effects in the lower part of the income distribution. We also show that the linear IV and FE estimates differ primarily because of different weighting of marginal effects. (JEL C26, D14, J12, J13)
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Cites
Instrumental Variables Regression with Weak Instruments
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The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit
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Estimating Marginal Returns to Education
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Cited by
The Economics of Human Development and Social Mobility
Heckman, J. J., & Mosso, S. (2014) · Annual Review of Economics · doi:10.1146/annurev-economics-080213-040753 · Cited by 940
Doepke, M., Sorrenti, G., & Zilibotti, F. (2019) · Annual Review of Economics · doi:10.1146/annurev-economics-080218-030156 · Cited by 193
Early and Late Human Capital Investments, Borrowing Constraints, and the Family
Caucutt, E. M., & Lochner, L. (2020) · Journal of Political Economy · doi:10.1086/704759 · Cited by 191
Flaking Out: Student Absences and Snow Days as Disruptions of Instructional Time
Goodman, J. (2014) · doi:10.3386/w20221 · Cited by 177
Estimating Intergenerational and Assortative Processes in Extended Family Data
Collado, M. D., Ortuño-Ortín, I., & Stuhler, J. (2023) · The Review of Economic Studies · doi:10.1093/restud/rdac060 · Cited by 41
Metadata
- Authors
- Løken, K. V., Mogstad, M., & Wiswall, M.
- Venue
- American Economic Journal: Applied Economics
- Publisher
- American Economic Association
- Published
- 2012-04-01
- Volume
- 4
- Issue
- 2
- Pages
- 1-35
- ISSN
- 1945-7782 (ISSN-L)
- 1945-7790
- OpenAlex
- W1975703143
- Cited by
- 182
- References
- 10
- FWCI
- 15.28
- Type
- journal article
- Language
- en
- Open access
- closed
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- Løken, K. V., Mogstad, M., & Wiswall, M. (2012). What Linear Estimators Miss: The Effects of Family Income on Child Outcomes. American Economic Journal: Applied Economics. https://doi.org/10.1257/app.4.2.1
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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