Stature And Lifetime Labor Market Outcomes: Accounting For Unobserved Differences.pdf

Height, Life-Time Labor Market Outcomes, and Unobserved Differences (Bockerman et al., 2012)

This study investigates the effect of height on lifetime labor market outcomes using a unique dataset comprising Finnish twins. It builds upon previous research showing a "height premium" – taller individuals tend to earn higher wages and have better employment prospects.

Key Findings:

Height Premium for Women, Not Men: The study finds a significant positive association between height and earnings for women, but not for men. This suggests that cognitive ability, which is generally correlated with height, plays a larger role in explaining the height premium for men.

Discrimination Against Short Persons (for Women): Using capital income as an outcome variable, the study hints at potential discrimination against short women in the labor market.

Removing Unobserved Ability: The authors utilize twin data to isolate the effect of height from unobserved individual differences, such as cognitive ability and non-cognitive skills. This strengthens their conclusion regarding the source of the height premium.

Methodology:

The study employs instrumental variables estimation using genetically identical (monozygotic) twins as a control group. This approach allows for the removal of genetic and shared environmental influences, providing a clearer picture of the effect of height independent of unobserved individual characteristics.

Implications:

Cognitive Ability vs. Other Factors: The findings underscore the importance of cognitive ability in explaining the height premium for men. For women, both cognitive ability and potential discrimination against short individuals might play a role.

* Need for Further Research: While this study provides valuable insights, further research is needed to fully understand the complex interplay between height, unobserved individual characteristics, and labor market outcomes.