**TABLE 3**

**Exploring Interaction Effects: The Effect of Inequality on Growth by Education, Cohort, and Initial Income**

||(Clust|er-corrected|Standard E|rrors in Pare|ntheses)||||
|---|---|---|---|---|---|---|---|---|
||**199**|**5-96**|**199**|**7-98**|**199**|**9-00**|**200**|**1-02**|
||(1)|(2)|(1)|(2)|(1)|(2)|(1)|(2)|
|**Base Effects:**|||||||||
|Inequality (MlnD)|**_-0.726*_**|-0.257|**_-0.344*_**|-0.188|**_-0.268*_**|-0.131|-0.142|-0.074|
||(0.309)|(0.181)|(0.092)|(0.104)|(0.078)|(0.086)|(0.082)|(0.078)|
|HH Education 8788|0.000|**_0.004*_**|**_-0.002*_**|0.000|-0.001|0.001|0.000|0.000|
||(0.003)|(0.001)|(0.001)|(0.000)|(0.001)|(0.000)|(0.001)|(0.000)|
|Age <= 30|0.001|0.002|-0.001|0.003|0.004|0.009|-0.001|0.009|
||(0.013)|(0.011)|(0.005)|(0.005)|(0.004)|(0.005)|(0.004)|(0.006)|
|31 <= Age <= 40|-0.021|**_-0.024*_**|0.000|**_-0.007*_**|0.005|**_-0.005*_**|0.000|**_-0.004*_**|
||(0.011)|(0.005)|(0.004)|(0.002)|(0.003)|(0.002)|(0.004)|(0.002)|
|51 <= Age <= 60|0.002|-0.196|**_-0.009*_**|-0.054|**_-0.007*_**|-0.075|**_-0.010*_**|-0.079|
||(0.007)|(0.153)|(0.002)|(0.084)|(0.002)|(0.070)|(0.002)|(0.069)|
|Age > 60|**_-0.034*_**|**_-0.035*_**|**_-0.018*_**|**_-0.018*_**|**_-0.017*_**|**_-0.017*_**|**_-0.019*_**|**_-0.019*_**|
||(0.009)|(0.009)|(0.004)|(0.004)|(0.003)|(0.003)|(0.003)|(0.003)|
|Income Quartile (Q1)||0.002||0.000||0.005||0.005|
|||(0.008)||(0.006)||(0.005)||(0.006)|
|Income Quartile (Q2)||0.001||0.003||0.009||0.009|
|||(0.007)||(0.005)||(0.005)||(0.006)|
|Income Quartile (Q3)||0.004||-0.001||0.002||0.004|
|||(0.006)||(0.005)||(0.005)||(0.005)|
|**Interactions:**|||||||||
|Inequality * Education|0.064||**_0.031*_**||**_0.024*_**||0.008||
||(0.038)||(0.010)||(0.009)||(0.009)||
|Inequality * Under 40|-0.046<br>(0.159)||-0.108<br>(0.056)||**_-0.134*_**<br>(0.039)||-0.052<br>(0.055)||
|Inequality * Q1||-0.067||-0.054||-0.075||-0.079|
|||(0.099)||(0.084)||(0.070)||(0.069)|
|Inequality * Q2||-0.015||-0.034||-0.103||-0.084|
|||(0.099)||(0.073)||(0.069)||(0.087)|
|Inequality * Q3||-0.032||0.028||-0.003||-0.006|
|||(0.085)||(0.069)||(0.067)||(0.067)|
|**Combined Effect by Quartile:**|||||||||
|Combined Q1||**_-0.281*_**||**_-0.242*_**||**_-0.206*_**||**_-0.154*_**|
|||(0.091)||(0.094)||(0.078)||(0.074)|
|Combined Q2||**_-0.230*_**||**_-0.221*_**||**_-0.234*_**||**_-0.158*_**|
|||(0.102)||(0.090)||(0.077)||(0.080)|
|Combined Q3||**_-0.246*_**||-0.160||-0.134||-0.081|
|||(0.088)||(0.086)||(0.075)||(0.077)|
|F-Interactions|1.23|0.33|**_6.48*_**|0.77|**_8.21*_**|2.06|1.51|1.59|
||(0.2980)|(0.8005)|(0.0024)|(0.5162)|(0.0006)|(0.1121)|(0.2264)|(0.1982)|

_Notes:_ 1) Each specification is based on household-level specification with full household and village covariates and Jacknifed Inequality (Column (5) of Table 2) 2) For each endpoint, we estimate the household specification with separate sets of interactions for Education and Cohort, and Income Quartile. The Cohort Interaction is based on an indicator of whether the household head was 40 years or younger in 1987-88.

3) "F-Interactions" is the F-statistic for the null hypothesis of whether the interaction effects are jointly zero.

4) "Combined Q1" (etc.) are the total effects of inequality on income growth for households in a specified 1987-88 Income Quartile