Table 3.
comparing alternative measures of permanent income
| Grade | K | 1 | 3 | 5 | 8 |
|---|---|---|---|---|---|
| Set uses only current and prior family incomes | |||||
| Log (Perm Income) | 0.142*** (0.037) |
0.165*** (0.046) |
0.204*** (0.047) |
0.238*** (0.046) |
0.305*** (0.055) |
| Set uses all years of income | |||||
| Log (All Years Income) | 0.248*** (0.050) |
0.264*** (0.054) |
0.280*** (0.053) |
0.261*** (0.047) |
0.305*** (0.055) |
| Log (2 Year Rolling) | 0.182*** (0.044) |
0.171*** (0.046) |
0.254*** (0.046) |
0.248*** (0.041) |
0.262*** (0.048) |
| Log (3 Year Rolling) | 0.182*** (0.046) |
0.183*** (0.048) |
0.260*** (0.051) |
0.233*** (0.043) |
0.261*** (0.049) |
|
| |||||
| Timing of Income | |||||
| Log (Perm Income) | 0.141*** (0.037) |
0.165*** (0.046) |
0.204*** (0.047) |
0.238*** (0.046) |
0.305*** (0.055) |
| Log (K Income) | 0.141*** (0.037) |
0.114*** (0.038) |
0.088** (0.036) |
0.113*** (0.034) |
0.132*** (0.042) |
| Log (1st Grade Income) | 0.157*** (0.045) |
0.174*** (0.048) |
0.133*** (0.040) |
0.175*** (0.046) |
|
| Log (3rd Grade Income) | 0.201*** (0.044) |
0.132*** (0.040) |
0.191*** (0.042) |
||
| Log (5th Grade Income) | 0.224*** (0.038) |
0.202*** (0.045) |
|||
| Observations | 7,265 | 7,001 | 6,800 | 7,032 | 6,533 |
Notes: each coefficient is from a separate regression. Standard errors in parenthesis, ***1%, **5%, *10%