Table 8.
Correlation between MSE and Household Income of PHD Study Participants
| Dummies for household income per year (y) | Both Forms | Subjective-Probability Form | Age-Range Form | ||||||
|---|---|---|---|---|---|---|---|---|---|
| μ i,ψ,1 | μ i,ψ,2 | μ i,ψ,3 | μ i,ψ,1 | μ i,ψ,2 | μ i,ψ,3 | μ i,ψ,1 | μ i,ψ,2 | μ i,ψ,3 | |
| 1($25,000 ≤ y< $55,0000) | 0.22** (0.10) | 0.35*** (0.09) | 0.19* (0.10) | −0.02 (0.10) | 0.32*** (0.10) | 0.02 (0.10) | q 29*** (0.10) | 0.28*** (0.09) | 0.24** (0.11) |
| 1($55,000 ≤ y< $105,0000) | −0.17 (0.13) | 0.37*** (0.12) | −0.25** (0.11) | −0.35*** (0.16) | 0.45*** (0.12) | −0.22* (0.13) | −0.09 (0.12) | 0.25** (0.12) | −0.14 (0.10) |
| 1(y ≥ $105,000) | −0.51*** (0.13) | 0.47*** (0.14) | −0.53*** (0.12) | −0.67*** (0.12) | 0.60*** (0.14) | −0.40*** (0.13) | −0.45*** (0.13) | 0.26* (0.14) | −0.37*** (0.11) |
| Observations | 822 | 822 | 822 | 822 | 822 | 822 | 822 | 822 | 822 |
| R 2 | 0.071 | 0.064 | 0.090 | 0.080 | 0.062 | 0.080 | 0.058 | 0.071 | 0.046 |
Notes: This table shows the association of MSE parameters with household income. We standardized MSE parameters so that they have mean = 0 and variance = 1. The higher the household income, the lower μi,ψ,1 and μi,ψ,3. In contrast, the higher the household income, the higher μi,ψ,2, thus indicating that higher-income families have higher expectations about the impact of investments in the human capital of children. In the regressions, we control for maternal birth cohort, race/ethnicity, educational attainment, marital status, and scores on the CESD scale. See Appendix Table C6 for the complete table of regression coefficients. Robust standard errors in parentheses.
p < 0.10,
p < 0.05,
p < 0.01.