Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242559
Year of Publication: 
2018
Series/Report no.: 
Economics Working Paper Series No. 2018/03
Publisher: 
Auckland University of Technology (AUT), Faculty of Business, Economics and Law, Auckland
Abstract: 
Estimating causal effects of parental characteristics on determinants of child outcomes is complicated due to endogeneity problems. Utilizing matched mother-child data from National Longitudinal Surveys of Youth, this paper integrates an orthogonalization technique to 2SLS-IV regressions. The key findings indicate that a rise in mothers' selfesteem improves children's home environment conditions that promote cognitive and emotional developments, with larger effects observed among mothers in socio-economically disadvantaged families. The magnitude of these effects are either higher than or comparable to the effects of mothers' education and cognitive ability. Additionally, we find that a rise in mothers' self-esteem improves children's reading abilities.
Subjects: 
Childhood Development
Home environment
Mothers' self-esteem
Instrumental variables
Orthogonalization
JEL: 
C26
J13
J24
Document Type: 
Working Paper

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