Table 2.
Family Income Elasticity-Family Income Gini Models. Gini Standardized to Mean 0, Standard Deviation 1. PSID and Census Data
OLS
|
Random Effects
|
Fixed Effects
|
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Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 | Model 7 | Model 8 | Model 9 | |
Income Not Adjusted for Family Size | |||||||||
| |||||||||
Parental Income | .482 (.022) | .474 (.035) | .199 (.074) | .444 (.023) | .194 (.080) | .446 (.031) | .208 (.086) | .415 (.033) | .244 (.033) |
| |||||||||
Parental Income × Gini | .052 (.028) | .033 (.058) | .042 (.023) | .035 (.054) | .051 (.026) | .020 (.061) | .029 (.032) | −.003 (.065) | |
| |||||||||
Gini | −.570 (.320) | −.383 (.636) | −.485 (.251) | −.398 (.598) | −.583 (.291) | −.241 (.678) | −.393 (.376) | −.068 (.708) | |
| |||||||||
Intercept | 5.664 (.246) | 5.748 (.388) | 8.826 (.807) | 6.070 (.258) | 8.878 (.885) | 6.056 (.347) | 8.734 (.954) | 6.284 (.345) | 8.475 (.383) |
| |||||||||
State-year Intercept | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |||
| |||||||||
State-year Slope | ✓ | ✓ | |||||||
| |||||||||
Additional Covariates | ✓ | ✓ | ✓ | ✓ | |||||
| |||||||||
AIC | 4208.640 | 4207.059 | 3564.104 | 4215.783 | 3759.139 | 4217.471 | 3765.634 | 4194.975 | 3613.451 |
| |||||||||
Income Adjusted for Family Size | |||||||||
| |||||||||
Parental Income | .540 (.021) | .535 (.033) | .243 (.068) | .507 (.022) | .240 (.075) | .509 (.029) | .249 (.080) | .479 (.034) | .292 (.031) |
| |||||||||
Parental Income × Gini | .037 (.031) | .019 (.048) | .029 (.022) | .021 (.051) | .032 (.025) | .006 (.057) | .015 (.034) | −.008 (.051) | |
| |||||||||
Gini | −.368 (.323) | −.202 (.485) | −.298 (.222) | −.225 (.529) | −.333 (.263) | −.067 (.592) | −.200 (.366) | .030 (.494) | |
| |||||||||
Intercept | 4.902 (.219) | 4.958 (.348) | 7.993 (.682) | 5.243 (.231) | 8.014 (.773) | 5.228 (.308) | 7.926 (.825) | 5.483 (.329) | 7.506 (.305) |
| |||||||||
State-year Intercept | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |||
| |||||||||
State-year Slope | ✓ | ✓ | |||||||
| |||||||||
Additional Covariates | ✓ | ✓ | ✓ | ✓ | |||||
| |||||||||
AIC | 4086.374 | 4085.556 | 3394.159 | 4089.411 | 4091.043 | 4092.390 | 3600.272 | 4074.602 | 3448.951 |
| |||||||||
N individuals | 2396 | 2396 | 2096 | 2396 | 2096 | 2396 | 2096 | 2396 | 2096 |
| |||||||||
N state-years | 689 | 689 | 621 | 689 | 621 | 689 | 621 | 689 | 621 |
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N states | 43 | 43 | 41 | 43 | 41 | 43 | 41 | 43 | 41 |
Note: Standard errors in parentheses (robust, clustered by state and year). All continuous variables except parental and adult income are transformed to mean 0, standard deviation 1. Random effects models fit with restricted maximum likelihood (REML). Because this method is based on error contrasts, AIC can be compared only across REML models with the same fixed components. Additional covariates included in Models 3, 5, 7, and 9 include all state-level variables listed in Online Appendix Table A2, plus interactions between parental income and these state-level variables, plus all individual-level parental covariates listed in Online Appendix Table A2.