Stature and Life-Time Labor Market Outcomes: Accounting for Unobserved Differences

50 Pages Posted: 8 Jun 2013

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Jari Vainiomäki

Tampere University

Abstract

We use twin data matched to register-based individual information on earnings and employment to examine the effect of height on life-time labor market outcomes. The use of twin data allows us to remove otherwise unobserved ability and other differences. The twin pair difference estimates from instrumental variables estimation for genetically identical twins reveal a significant height-wage premium for women but not for men. This result implies that cognitive ability explains the effect of height on life-time earnings for men. Additional findings using capital income as the outcome variable suggest that discrimination against short persons may play a role for women.

Keywords: height, weight, BMI, height premium, earnings, employment

JEL Classification: I10, J23, J31

Suggested Citation

Bockerman, Petri and Vainiomäki, Jari, Stature and Life-Time Labor Market Outcomes: Accounting for Unobserved Differences. IZA Discussion Paper No. 7424, Available at SSRN: https://ssrn.com/abstract=2276316

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Jari Vainiomäki

Tampere University

No Address Available

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