Table 10.
Correlation between MSE Latent Variables and HOME Score
| Variable | Both | Subjective Probability | Age Range | |||
|---|---|---|---|---|---|---|
| Standardized μi,ψ,1 | −0.024 (0.081) | −0.002 (0.074) | −0.095 (0.080) | −0.058 (0.074) | −0.014 (0.059) | 0.031 (0.053) |
| Standardized μi,ψ,2 | 0.167*** (0.045) | 0114*** (0.039) | 0.119*** (0.043) | 0.098** (0.040) | 0.170*** (0.045) | 0.083** (0.038) |
| Standardized μi,ψ,3 | −0.086 (0.067) | 0.010 (0.061) | −0.040 (0.066) | 0.034 (0.062) | −0.058 (0.048) | −0.014 (0.042) |
| Demographic variables included | No | Yes | No | Yes | No | Yes |
| Observations | 687 | 687 | 687 | 687 | 687 | 687 |
| R 2 | 0.037 | 0.270 | 0.034 | 0.271 | 0.031 | 0.265 |
Notes: This table shows the correlation between the measure of investment (the Home Observation for the Measurement of the Environment – HOME scores) and the MSE parameters. We find that the MSE parameter about the elasticity of child development with respect to investment - μi,ψ,2 – consistently predicts variation in the HOME score. In these regressions, we include the following control variables: a dummy variable takes the value of 1 if the mother’s year of birth is between 1978 and 1987 and 0 otherwise; a dummy variable takes the value of 1 if the mother’s year of birth is between 1988 and 1997 and 0 otherwise; a dummy variable takes the value of 1 if the mother is Hispanic and 0 otherwise; a dummy variable takes the value of 1 if the mother is non-Hispanic black and 0 otherwise; a dummy variable takes the value of 1 if the mother has at least a college degree and 0 otherwise; a dummy variable takes the value of 1 if the mother is married and 0 otherwise; a dummy variable takes the value of 1 if the maternal score on the CESD is greater than or equal to 16 and 0 otherwise; three dummy variables indicate the level of household income. Appendix Table C7 displays all of the estimated coefficients and their robust standard errors.
p < 0.10,
p < 0.05,
p < 0.01