5.3 Cognitive Skills Case Study

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5.3 Cognitive skills
Pooled, Fixed Effects and IV results for Math and PPVT scores
PPVT scores
For the pooled OLS we find that number of hours spent playing, in school and studying are highly significant. One hour of play increases on average the percentile rank of the PPVT score by 3.24, whereas for one extra hour spent studying the per- centile rank on average increases by 3.75, and finally for one extra hour of school the percentile rank increases by 3.59. For parental values only parental value for obedience is slightly positively significant that is at 10% significance level.
We do know that the pooled OLS estimates might not be accurate as we haven’t accounted for unobserved heterogeneity which might be because of some unobserved family, parental and community characteristics and differences. This therefore moti- vates us to conduct a first difference. We observe that number of hours spent playing and studying are still significant. Therefore one extra hour of play and study on aver- age increases the percentile rank of PPVT by 2.94 and 3.17. The time use variable for school however is no longer significant at a p-value of 0.102 27. Furthermore number of hours spent sleeping is also significant. Therefore one extra hour of sleep increases the percentile rank on
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After controlling for possible endogeneity we find that all of our time use variables are positively significant. Furthermore the magnitude of our coefficients has increased considerably, which shows that the problem of endogeneity might have been the chief reason for low values of time use coefficients in first difference and pooled OLS. Therefore with IV estimation, one hour of extra play, study, school and sleep on average increases the percentile rank of PPVT scores by 19.08,19.15, 18.00 and 10.71

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