Q2. What is the standard approach to instrumenting for a squared term?
A standard approach to instrumenting for a squared term would be to use higher order terms in the instrument as instruments for the squared term.
Q3. What is the effect of the age effects on the literacy of the older cohort?
Once the authors include the cohort dummy variables, however, the age effects indicate a steeper downward sloping profile, with the 46-55 year olds having 3.9% lower average literacy and the 56-65 year olds having 7.2% lower average literacy than the base group.
Q4. How does the test for mother’s occupation affect literacy?
The same test for mother’s occupation has a P-value of .79.10claimed to have gotten good grades in math having 1.5% higher literacy and those who thought teachers went too fast having 2.5% lower literacy.
Q5. What is the likely explanation of the patterns?
A more likely explanation of the patterns is that literacy skills deteriorate after leaving school but that the rate of deterioration declines with age.
Q6. What is the effect of school leaving age on educational attainment?
The estimated school leaving age coefficients indicate that changes in compulsory schooling exert sizeable impacts on educational attainment.
Q7. What is the average literacy level for the cohort that was 46-55 in 1994?
The cohort that was 46-55 in 1994, for example, has average literacy levels that are 2.8% higher than those for the base cohort, which was 26- 35 in 1994.