Table 3.
Estimates of the Technology that Ignore Measurement Error (Model of Table 1 with No Measurement Error Corrections) Linear Anchoring on Educational Attainment (Years of Schooling) No Unobserved Heterogeneity (π), Factors Normally Distributed
| Panel A: Technology of Cognitive Skill Formation | ||||
| First Stage Parameters |
Second Stage Parameters |
|||
| Current Period Cognitive Skills (Self-Productivity) | γ 1,C,1 | 0.403 (0.058) |
γ 2,C,1 | 0.657 (0.013) |
| Current Period Noncognitive Skills (Cross-Productivity) | γ 1,C,2 | 0.218 (0.105) |
γ 2,C,2 | 0.009 (0.005) |
| Current Period Investments | γ 1,C,3 | 0.067 (0.090) |
γ 2,C,3 | 0.167 (0.018) |
| Parental Cognitive Skills | γ 1,C,4 | 0.268 (0.078) |
γ 2,C,4 | 0.047 (0.009) |
| Parental Noncognitive Skills | γ 1,C,5 | 0.044 (0.050) |
γ 2,C,5 | 0.119 (0.150) |
| Complementarity Parameter | ϕ 1,C | 0.375 (0.294) |
ϕ 2,C | −0.827 (0.093) |
| Implied Elasticity of Substitution | 1/(1–ϕ1,C) | 1.601 | 1/(1–ϕ2,C) | 0.547 |
| Variance of Shocks ηC,t | δ 2 1,C | 0.941 (0.048) |
δ 2 2,C | 0.358 (0.006) |
|
Panel B: Technology of Noncognitive Skill Formation | ||||
| First Stage Parameters |
Second Stage Parameters |
|||
| Current Period Cognitive Skills (Cross-Productivity) | γ 1,N,1 | 0.193 (0.095) |
γ 2,N,1 | 0.058 (0.014) |
| Current Period Noncognitive Skills (Self-Productivity) | γ 1,N,2 | 0.594 (0.090) |
γ 2,N,2 | 0.638 (0.020) |
| Current Period Investments | γ 1,N,3 | 0.099 (0.296) |
γ 2,N,3 | 0.239 (0.031) |
| Parental Cognitive Skills | γ 1,N,4 | 0.114 (0.055) |
γ 2,N,4 | 0.065 (0.015) |
| Parental Noncognitive Skills | γ 1,N,5 | 0.000 (0.821) |
γ 2,N,5 | 0.000 (0.203) |
| Complementarity Parameter | ϕ 1,N | −0.723 (0.441) |
ϕ 2,N | −0.716 (0.127) |
| Implied Elasticity of Substitution | 1/(1–ϕ1,N) | 0.580 | 1/(1–ϕ2,N) | 0.583 |
| Variance of Shocks ηN,t | δ 2 1,N | 0.767 (0.076) |
δ 2 2,N | 0.597 (0.017) |
Note: Standard errors in parenthesis