Table 3.4: Regression results of sixth-grade skill scores on second-grade skill scores. Reading Spelling Math OLS IV OLS IV OLS IV Panel I: School FE SKILLG1 .501*** .782*** .577*** .803*** .597*** .794*** (.005) (.009) (.005) (.010) (.005) (.007) Parental education (Middle=ref.) Low-educated -.080*** -.051*** -.025 -.016 -.063*** -.050*** (.020) (.020) (.019) (.010) (.019) (.019) High-educated .307*** .218*** .129*** .085*** .247*** .185*** (.012) (.013) (.012) (.012) (.011) (.011) Schooling School FE YES YES YES YES YES YES Observations 30,791 30,791 30,725 30,725 26,204 26,204 R-squared .440 .375 .464 .421 .526 .494 Panel II: School performance SKILLG1 .486*** .748*** .528*** .729*** .566*** .766*** (.005) (.010) (.005) (.010) (.005) (.008) Parental education (Middle=ref.) Low-educated -.045** -.009 -.027 -.017 -.039* -.025 (.022) (.023) (.021) (.022) (.021) (.021) High-educated .298*** .209*** .141*** .106*** .236*** .169*** (.013) (.013) (.012) (.013) (.012) (.012) Schooling School performance .498*** .444*** .543*** .505*** .491*** .453*** (.013) (.014) (.014) (.014) (.012) (.012) Observations 26,324 26,324 26,204 26,204 26,820 26,820 R-squared .394 .333 .399 .359 .480 .444 Note. SKILLG2 andSKILLG6 refer to the standardized skill scores in grades two and six, respectively. The table presents the OLS and IV estimates. The dummy for the missing category of parental education is excluded from the table. Additional unreported student characteristics include age, sex, migration background, household type, and family size. We also include a control for grade retention, a covid dummy, and year FE. The first panel of the table also controls with a school FE, whereas the second panel of the table includes the leave-out average school performance as indicator for average school performance. The constant is not reported in the table but is included in the model. Robust standard errors are displayed in parentheses. *** p< .01, ** p< .05, * p< .1. 65
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