Stature and long-term labor market outcomes: Evidence using Mendelian randomization

Abstract

We use the Young Finns Study (N=∼2000) on the measured height linked to register-based long-term labor market outcomes. The data contain six age cohorts (ages 3, 6, 9, 12, 15 and 18, in 1980) with the average age of 31.7, in 2001, and with the female share of 54.7. We find that taller people earn higher earnings according to the ordinary least squares (OLS) estimation. The OLS models show that 10cm of extra height is associated with 13% higher earnings. We use Mendelian randomization, with the genetic score as an instrumental variable (IV) for height to account for potential confounders that are related to socioeconomic background, early life conditions and parental investments, which are otherwise very difficult to fully account for when using covariates in observational studies. The IV point estimate is much lower and not statistically significant, suggesting that the OLS estimation provides an upward biased estimate for the height premium. Our results show the potential value of using genetic information to gain new insights into the determinants of long-term labor market success.

Heritability of lifetime earnings

“…Our measure for the lifetime earnings (i.e., work income) of an individual is the average of (the logarithm of) the individual's wage and salary earnings and self-employment income, converted to euros, deflated to year 2000 euros using the consumer price index, and calculated over the sample period; see also Böckerman et al (2017), who use a similar measure of long-run income, calculated from the FLEED data. The findings of Haider and Solon (2006) for the U.S. and those of Böhlmark and Lindquist (2006) for Sweden suggest that this long-term sample average ought to be a reliable measure for the lifetime earnings.…”

Does higher education protect against obesity? Evidence using Mendelian randomization

“…This method uses genetic instruments to estimate causal effects (Tyrrell et al, 2016;Böckerman et al, 2017;Gupta et al, 2017). The method exploits Mendel's law of independent assortment according to which trait is inherited independently from other traits at conception.…”

Letter: is unrealised adult height resulting from paediatric Crohn’s disease associated with a potential reduction in lifetime earnings?

“…Adult height was more reduced in patients with pre-pubertal onset of disease and in those with a more severe disease course. 1 Numerous studies have linked height and earning potential regardless of sex, suggesting a 2.5 cm decrease in adult height predicts a 1.4%-3.25% decrease in earnings, 2,3 and it has been estimated that linear growth impairment translates to a global economic impact of $176.8 billion. 4 Although confounded at least in part by parental socioeconomic status, height correlates positively with noncognitive social skills and may be a mechanism for unintentional bias in the labour market.…”

“…4 Although confounded at least in part by parental socioeconomic status, height correlates positively with noncognitive social skills and may be a mechanism for unintentional bias in the labour market. 3 Despite these known associations, little data exist on the relationship between unrealised adult height and lifetime earnings for paediatric Crohn's disease (CD).…”