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Author: Dahl, Gordon B.

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1.	Dahl, Gordon B. Lochner, Lance John
1.	The Impact of Family Income on Child Achievement NBER Working Paper No. 11279, National Bureau of Economic Research, April 2005. Also: http://www.nber.org/papers/w11279.pdf Cohort(s): Children of the NLSY79, NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Achievement; Earned Income Tax Credit (EITC); Family Income; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Understanding the consequences of growing up poor for a child's well-being is an important research question, but one that is difficult to answer due to the potential endogeneity of family income. Past estimates of the effect of family income on child development have often been plagued by omitted variable bias and measurement error. In this paper, we use a fixed effect instrumental variables strategy to estimate the causal effect of income on children's math and reading achievement. Our primary source of identification comes from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100. Using a panel of over 6,000 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity and endogenous transitory income shocks as well as measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises math test scores by 2.1% and reading test scores by 3.6% of a standard deviation. The results are even stronger when looking at children from disadvantaged families who are affected most by the large changes in the EITC, and are robust to a variety of alternative specifications.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement." NBER Working Paper No. 11279, National Bureau of Economic Research, April 2005.

2.	Dahl, Gordon B. Lochner, Lance John
2.	The Impact of Family Income on Child Achievement Presented: London, England, Econometric Society 2005 World Congress, 19 - 24th August 2005. Also: http://eswc2005.econ.ucl.ac.uk/papers/ESWC/2005/2371/dahl%26lochner.pdf Cohort(s): Children of the NLSY79, NLSY79 Publisher: Econometric Society Keyword(s): Armed Forces Qualifications Test (AFQT); Children, Academic Development; Earned Income Tax Credit (EITC); Family Income; Family Structure; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Permission to reprint the abstract has not been received from the publisher. Understanding the consequences of growing up poor for a child's well-being is an important research question, but one that is difficult to answer due to the potential endogeneity of family income. Past estimates of the effect of family income on child development have often been plagued by omitted variable bias and measurement error. In this paper, we use a fixed effect instrumental variables strategy to estimate the causal effect of income on children's math and reading achievement. Our primary source of identification comes from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100. Using a panel of over 6,000 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity and endogenous transitory income shocks as well as measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises math test scores by 2.1% and reading test scores by 3.6% of a standard deviation. The results are even stronger when looking at children from disadvantaged families who are affected most by the large changes in the EITC, and are robust to a variety of alternative specifications.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement." Presented: London, England, Econometric Society 2005 World Congress, 19 - 24th August 2005.

3.	Dahl, Gordon B. Lochner, Lance John
3.	The Impact of Family Income on Child Achievement Presented: Chicago, IL, The Chicago Workshop on Black-White Inequality, Department of Economics, University of Chicago, April 21, 2006. Also: http://economics.uchicago.edu/Inequality_Workshop/papers/Dahl_Lochner_2006_income.pdf Cohort(s): Children of the NLSY79, NLSY79 Publisher: Department of Economics, University of Chicago Keyword(s): Academic Development; Achievement; Children, Academic Development; Children, Well-Being; Earned Income Tax Credit (EITC); Family Income; Modeling, Fixed Effects; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Permission to reprint the abstract has not been received from the publisher. Understanding the consequences of growing up poor for a child's well-being is an important research question, but one that is difficult to answer due to the potential endogeneity of family income. Past estimates of the effect of family income on child development have often been plagued by omitted variable bias and measurement error. In this paper, we use a fixed effect instrumental variables strategy to estimate the causal effect of income on children's math and reading achievement. Our primary source of identification comes from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100. Using a panel of over 6,000 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity and endogenous transitory income shocks as well as measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises math test scores by 2.1% and reading test scores by 3.6% of a standard deviation. The results are even stronger when looking at children from disadvantaged families who are affected most by the large changes in the EITC, and are robust to a variety of alternative specifications.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement." Presented: Chicago, IL, The Chicago Workshop on Black-White Inequality, Department of Economics, University of Chicago, April 21, 2006.

4.	Dahl, Gordon B. Lochner, Lance John
4.	The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit NBER Working Paper No. 14599, National Bureau of Economic Research, December 2008. Also: http://www.nber.org/papers/w14599.pdf Cohort(s): Children of the NLSY79, NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Children, Academic Development; Earned Income Tax Credit (EITC); Family Income; Family Structure; Modeling, Fixed Effects; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Taxes; Variables, Instrumental A brief narrative description of the journal article, document, or resource. Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use two simulated instrumental variables strategies to estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100. Using a panel of almost 5,000 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity, endogenous transitory income shocks, and measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6% of a standard deviation in the short run. The gains are larger for children from disadvantaged families and are robust to a variety of alternative specifications. We find little evidence of long-run income effects, with most of the effects disappearing after one year.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit." NBER Working Paper No. 14599, National Bureau of Economic Research, December 2008.

5.	Dahl, Gordon B. Lochner, Lance John
5.	The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit Discussion Paper No. 1361-09, Institute for Research on Poverty, January 2009. Also: http://www.irp.wisc.edu/publications/dps/pdfs/dp136109.pdf Cohort(s): Children of the NLSY79 Publisher: Institute for Research on Poverty (IRP), University of Wisconsin - Madison Keyword(s): Achievement; Child Development; Children, Academic Development; Children, Poverty; Earned Income Tax Credit (EITC); Endogeneity; Family Income; Family Influences; Heterogeneity; Modeling, Fixed Effects; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Permission to reprint the abstract has not been received from the publisher. Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use two simulated instrumental variables strategies to estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20 percent, or approximately $2,100. Using a panel of almost 5,000 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity, endogenous transitory income shocks, and measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6 percent of a standard deviation in the short run. The gains are larger for children from disadvantaged families and are robust to a variety of alternative specifications. We find little evidence of long-run income effects, with most of the effects disappearing after one year. ... To make the PIAT test scores more easily interpretable, we create normalized test scores with a mean of zero and a standard deviation of one based on the random sample of test takers (i.e. excluding the poor and minority oversamples). We also create a combined math-reading score, which takes the average of our normalized math and reading scores. This is then re-normalized to have a mean of zero and standard deviation of one in the random sample.2
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit." Discussion Paper No. 1361-09, Institute for Research on Poverty, January 2009.

6.	Dahl, Gordon B. Lochner, Lance John
6.	The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit CIBC Working Paper Series, Working Paper #2011-3, Department of Economics, Social Science Centre, The University of Western Ontario, 2011. Also: http://economics.uwo.ca/centres/cibc/wp2011/Dahl_Lochner03.pdf Cohort(s): Children of the NLSY79 Publisher: Economics Department, Queens University Keyword(s): Achievement; Child Development; Children, Academic Development; Children, Poverty; Earned Income Tax Credit (EITC); Endogeneity; Family Income; Family Influences; Heterogeneity; Modeling, Fixed Effects; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Permission to reprint the abstract has not been received from the publisher. Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use an instrumental variables strategy to estimate the causal effect of income on children’s math and reading achievement. Our identification derives from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100, between 1993 and 1997. Using a panel of roughly 4,500 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity, endogenous transitory income shocks, and measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6% of a standard deviation in the short-run. Test gains are larger for children from disadvantaged families and are robust to a variety of alternative specifications.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit." CIBC Working Paper Series, Working Paper #2011-3, Department of Economics, Social Science Centre, The University of Western Ontario, 2011.

7.	Dahl, Gordon B. Lochner, Lance John
7.	The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit American Economic Review 102,5 (2012): 1927-1956. Also: http://dx.doi.org/10.1257/aer.102.5.1927 Cohort(s): Children of the NLSY79, NLSY79 Publisher: American Economic Association Keyword(s): Earned Income Tax Credit (EITC); Family Income; Modeling, Instrumental Variables; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Permission to reprint the abstract has not been received from the publisher. Using an instrumental variables strategy, we estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, nonlinear changes in the Earned Income Tax Credit. The largest of these changes increased family income by as much as 20 percent, or approximately $2,100, between 1993 and 1997. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6 percent of a standard deviation in the short run. Test gains are larger for children from disadvantaged families and robust to a variety of alternative specifications.
	Bibliography Citation Dahl, Gordon B. and Lance John Lochner. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit." American Economic Review 102,5 (2012): 1927-1956.

8.	Dahl, Gordon B. Moretti, Enrico
8.	The Demand for Sons: Evidence from Divorce, Fertility, and Shotgun Marriage Working Paper 01/2004, Centre for Household Income, Labour, and Demographics, Torino Italy, January 2004. Also: http://www.child-centre.it/papers/child01_2004.pdf Cohort(s): NLSY79 Publisher: Centre for Household Income, Labour, and Demographic Economics Keyword(s): Childbearing, Premarital/Nonmarital; Divorce; Family Structure; Fertility; Gender; Marital Status Permission to reprint the abstract has not been received from the publisher. In this paper, we show how parental preferences for sons versus daughters affect marital status, family structure, and fertility behavior. Specifically, we document that having girls has significant effects on divorce, child custody, marriage, shotgun marriage when the sex of the child is known before birth, and fertility stopping rules. Using a simple model, we show that taken individually, each piece of evidence is not sufficient to establish the existence of parental gender bias. But taken together, our empirical evidence indicates that parents in the U.S. favor boys over girls. We begin by documenting that parents with girls are significantly more likely to be divorced than parents with boys. The effect is quantitatively substantial, with a 1 to 7 percent higher probability of divorce for parents with daughters. Moreover, divorced fathers are more likely to have their sons versus daughters living with them. We also show that women with only girls are substantially more likely to have never been married than women with only boys. Perhaps the most striking evidence comes from the analysis of shotgun marriages using Vital Statistics birth record data. Mothers who find out their child will be a boy are more likely to marry their partner before delivery. Specifically, among those who have an ultrasound test during their pregnancy, we find that mothers carrying a boy are more likely to be married at delivery. When we turn to fertility stopping rules, we find that in families with at least two children, the probability of having another child is higher for all-girl families than all-boy families. This preference for sons seems to be largely driven by fathers. Survey evidence reveals that while women on average have only a slight preference for daughters, men report that they would rather have a boy by more than a two to one margin. In the final part of the paper, we compare the divorce, custody, and fertility effects for the U.S. to the effects in five developing c ountries.
	Bibliography Citation Dahl, Gordon B. and Enrico Moretti. "The Demand for Sons: Evidence from Divorce, Fertility, and Shotgun Marriage." Working Paper 01/2004, Centre for Household Income, Labour, and Demographics, Torino Italy, January 2004.

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