Cost and Processing Analysis for Retailers In view of the vast literature documenting the important role of family background characteristics . ethnicity, parental income and education in student achievement (Coleman et al., 1966; Phillips et al., 1998; Bowen and Bok, 1998), I assume that ij x is positively correlated with willingness-to-pay for educational quality. In the empirical analysis below, I also estimate specifications that allow willingness-to-pay to depend on family income while other characteristics have direct effects on student achievement
