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A Weighty Issue Revisited: The Dynamic Effect of Body Weight on Earnings and Satisfaction in Germany

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  • Frieder Kropfhäußer
  • Marco Sunder
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    Abstract

    We estimate the relationship between changes in the body mass index (bmi) and wages or satisfaction, respectively, in a panel of German employees. In contrast to previous literature, the dynamic models indicate that there is an inverse u-shaped association between bmi and wages among young workers. Among young male workers, work satisfaction is affected beyond the effect on earnings. Our finding of an implied optimum bmi in the overweight range could indicate that the recent rise in weight does not yet constitute a major limitation to productivity.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.439709.de/diw_sp0635.pdf
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    Bibliographic Info

    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 635.

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    Length: 14 p.
    Date of creation: 2014
    Date of revision:
    Handle: RePEc:diw:diwsop:diw_sp635

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    Keywords: Obesity; earnings; System-GMM estimator; dynamic panel model; SOEP;

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    1. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
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    3. Marina-Selini Katsaiti, 2009. "Obesity and Happiness," Working papers 2009-44, University of Connecticut, Department of Economics, revised Apr 2011.
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    13. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    14. Corrado Andini, 2013. "How well does a dynamic Mincer equation fit NLSY data? Evidence based on a simple wage-bargaining model," Empirical Economics, Springer, vol. 44(3), pages 1519-1543, June.
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    17. Andini, Corrado, 2013. "Earnings persistence and schooling returns," Economics Letters, Elsevier, vol. 118(3), pages 482-484.
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