Replication data for: What Linear Estimators Miss: The Effects of Family Income on Child Outcomes

Principal Investigator(s): View help for Principal Investigator(s) Katrine V. Løken; Magne Mogstad; Matthew Wiswall

Name	File Type	Size	Last Modified
20110041_dofiles_access			12/07/2019 02:01:PM
LICENSE.txt	text/plain	14.6 KB	12/07/2019 09:01:AM

Project Citation:

Løken, Katrine V., Mogstad, Magne, and Wiswall, Matthew. Replication data for: What Linear Estimators Miss: The Effects of Family Income on Child Outcomes. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116376V1

Project Description

Summary: 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)

Scope of Project

JEL Classification:
      C26 Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation
      D14 Household Saving; Personal Finance
      J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse
      J13 Fertility; Family Planning; Child Care; Children; Youth

Related Publications

Download this project

Published Versions

V1 [2019-12-07]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.