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The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills

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Author Info
Lundborg, Petter () (VU University Amsterdam)
Nystedt, Paul () (Linköping University)
Rooth, Dan-Olof () (Kalmar University)

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Abstract

The association between stature and favorable labor market outcomes has been extensively documented. Recent studies have attributed this height premium to cognitive and social skills. We offer an alternative explanation, where the premium mainly arises from the positive association between height and physical capacity. Accounting for the latter reduces the height premium by about 80 percent. By also accounting for cognitive and non-cognitive skills, we are able to explain the entire height premium. Our estimates are based on data from the military enlistment register that has been linked to earnings for the entire population of Swedish males aged 28-38 in 2003.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4266.

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Length: 49 pages
Date of creation: Jun 2009
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Handle: RePEc:iza:izadps:dp4266

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Related research
Keywords: earnings; height premium; cognitive and non-cognitive skills; physical capacity;

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Find related papers by JEL classification:
J10 - Labor and Demographic Economics - - Demographic Economics - - - General
J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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  2. Sandra E Black & Paul J Devereux & Kjell G Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 409-439, 02. [Downloadable!] (restricted)
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  3. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-94, December. [Downloadable!] (restricted)
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  4. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," NBER Working Papers 10522, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, 06. [Downloadable!] (restricted)
  6. Thomas, D. & Strauss, J., 1997. "Health and Wages: Evidence on Men and Women in Urban Brazil," Papers 97-05, RAND - Reprint Series.
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  7. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Cawley, John & Heckman, James & Vytlacil, Edward, 2001. "Three observations on wages and measured cognitive ability," Labour Economics, Elsevier, vol. 8(4), pages 419-442, September. [Downloadable!] (restricted)
  9. van den Berg, G. J & Lundborg, P & Nystedt, P & Rooth, D, 2009. "Critical Periods During Childhood and Adolescence: A Study of Adult Height Among Immigrant Siblings," Health, Econometrics and Data Group (HEDG) Working Papers 09/20, HEDG, c/o Department of Economics, University of York. [Downloadable!]
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  10. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October. [Downloadable!] (restricted)
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  11. Anne Case & Christina Paxson, 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 499-532, 06. [Downloadable!] (restricted)
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  12. Steckel, Richard H., 2009. "Heights and human welfare: Recent developments and new directions," Explorations in Economic History, Elsevier, vol. 46(1), pages 1-23, January. [Downloadable!] (restricted)
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  13. James J. Heckman & Yona Rubinstein, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May. [Downloadable!] (restricted)
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