Column 2 of Table 3 shows that the IV estimate of income effect is 0.116 (marginally significant with P -value of 0.109) and slightly larger than the OLS estimate in column 1, suggesting that there may exist some attenuation bias in the OLS estimate. 3.3.
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The sentences
The estimated coefficient on logarithmic income is 0.0908 and highly significant (see column 1 in Table 3 ). § After controlling for education and removing the effects from the standard determinants of earnings in the Mincer equation ( 50 ), the income variable should capture the part of permanent income that is determined by unobserved factors such as the family and genes effects, as well as transitory incomes.