We assess the implications of nonlinearity for IV and FE estimation when the estimated model is inappropriately assumed to be linear. Our application is the causal link between family income and child outcomes. Our nonlinear IV and FE estimates show an increasing, concave relationship between...

This paper examines New York City's Summer Youth Employment Program (SYEP). SYEP provides jobs to youth ages 14–24, and due to high demand for summer jobs, allocates slots through a random lottery system. We match student‐level data from the SYEP program with educational records from the NYC...