IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp4266.html
   My bibliography  Save this paper

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

Author

Listed:
  • Lundborg, Petter

    (Lund University)

  • Nystedt, Paul

    (Linköping University)

  • Rooth, Dan-Olof

    (Stockholm University)

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.

Suggested Citation

  • Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2009. "The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills," IZA Discussion Papers 4266, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp4266
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp4266.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas, Duncan & Strauss, John, 1997. "Health and wages: Evidence on men and women in urban Brazil," Journal of Econometrics, Elsevier, vol. 77(1), pages 159-185, March.
    2. 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.
    3. 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, President and Fellows of Harvard College, vol. 122(1), pages 409-439.
    4. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    5. Harper, Barry, 2000. "Beauty, Stature and the Labour Market: A British Cohort Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 771-800, Special I.
    6. Dan-Olof Rooth, 2009. "Obesity, Attractiveness, and Differential Treatment in Hiring: A Field Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    7. James J. Heckman, 2008. "Schools, Skills, And Synapses," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 289-324, July.
    8. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    9. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    10. John Komlos, "undated". "Height and Social Status in Eighteenth-Century Germany," Articles by John Komlos 27, Department of Economics, University of Munich.
    11. Dinda, Soumyananda & Gangopadhyay, P.K. & Chattopadhyay, B.P. & Saiyed, H.N. & Pal, M. & Bharati, P., 2006. "Height, weight and earnings among coalminers in India," Economics & Human Biology, Elsevier, vol. 4(3), pages 342-350, December.
    12. 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 869-895, October.
    13. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    14. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1019-1053, October.
    15. 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.
    16. 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, June.
    17. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    18. 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.
    19. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    20. Yona Rubinstein & James J. Heckman, 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jere R. Behrman & John Hoddinott & John A. Maluccio & Reynaldo Martorell, 2009. "Brains versus Brawn: Labor Market Returns to Intellectual and Health Human Capital in a Poor Developing Country," Middlebury College Working Paper Series 0907, Middlebury College, Department of Economics.
    2. Chiappori, Pierre-André & Oreffice, Sonia & Quintana-Domeque, Climent, 2009. "Fatter Attraction: Anthropometric and Socioeconomic Characteristics in the Marriage Market," IZA Discussion Papers 4594, Institute of Labor Economics (IZA).
    3. Price, Gregory N., 2013. "The allometry of metabolism and stature: Worker fatigue and height in the Tanzanian labor market," Economics & Human Biology, Elsevier, vol. 11(4), pages 515-521.
    4. Rooth, Dan-Olof, 2011. "Work out or out of work -- The labor market return to physical fitness and leisure sports activities," Labour Economics, Elsevier, vol. 18(3), pages 399-409, June.
    5. Bittmann, Felix, 2020. "The relationship between height and leadership: Evidence from across Europe," Economics & Human Biology, Elsevier, vol. 36(C).
    6. Petter Lundborg & Paul Nystedt & Dan-Olof Rooth, 2014. "Height and Earnings: The Role of Cognitive and Noncognitive Skills," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 141-166.
    7. Böckerman, Petri & Vainiomäki, Jari, 2013. "Stature and life-time labor market outcomes: Accounting for unobserved differences," Labour Economics, Elsevier, vol. 24(C), pages 86-96.
    8. Quintana-Domeque, Climent & Bozzoli, Carlos & Bosch, Mariano, 2012. "The evolution of adult height across Spanish regions, 1950–1980: A new source of data," Economics & Human Biology, Elsevier, vol. 10(3), pages 264-275.
    9. Pierre-André Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2012. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 120(4), pages 659-695.
    10. Tao, Hung-Lin, 2014. "Height, weight, and entry earnings of female graduates in Taiwan," Economics & Human Biology, Elsevier, vol. 13(C), pages 85-98.
    11. Björklund, Anders & Jäntti, Markus & Nybom, Martin, 2012. "The Role of Parental Income over the Life Cycle: A Comparison of Sweden and the UK," IZA Discussion Papers 7066, Institute of Labor Economics (IZA).
    12. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
    13. World Bank Group, 2017. "Multisectoral Nutrition Assessment in Sri Lanka's Estate Sector," World Bank Publications - Reports 26328, The World Bank Group.
    14. Lundborg, Petter & Nilsson, Anton & Rooth, Dan-Olof, 2011. "Early Life Health and Adult Earnings: Evidence from a Large Sample of Siblings and Twins," IZA Discussion Papers 5804, Institute of Labor Economics (IZA).
    15. Mariano Bosch & Carlos Bozzoli & Climent Quintana, 2009. "Infant mortality, income and adult stature in Spain," Working Papers 2009-27, FEDEA.
    16. A. Balietti & S. Datta & S. Veljanoska, 2022. "Air pollution and child development in India," Post-Print hal-03662124, HAL.
    17. Quintana-Domeque, Climent & Bozzoli, Carlos & Bosch, Mariano, 2011. "Infant mortality and adult stature in Spain," Social Science & Medicine, Elsevier, vol. 72(11), pages 1893-1903, June.
    18. Eiji Yamamura & Yoshiro Tsutsui, 2017. "Gap of height and education within couple and its effect on conflict and evaluation about partners: psychological cost of division of labor within household," Discussion Papers in Economics and Business 17-35, Osaka University, Graduate School of Economics.
    19. Balietti, Anca & Datta, Souvik & Veljanoska, Stefanija, 2022. "Air pollution and child development in India," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    20. Petri Böckerman & Edvard Johansson & Urpo Kiiskinen & Markku Heilövaara, 2010. "Does Physical Capacity Explain the Height Premium?," Working Papers 1074, Tampere University, Faculty of Management and Business, Economics.
    21. Böckerman, Petri & Johansson, Edvard & Kiiskinen, Urpo & Heliövaara, Markku, 2010. "The relationship between physical work and the height premium: Finnish evidence," Economics & Human Biology, Elsevier, vol. 8(3), pages 414-420, December.
    22. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2010. "No Country for Fat Men? Obesity, Earnings, Skills, and Health among 450,000 Swedish Men," IZA Discussion Papers 4775, Institute of Labor Economics (IZA).
    23. Victor Hugo de Oliveira & Climent Quintana-Domeque, 2014. "Early-Life Environment and Adult Stature in Brazil during the Period 1950 to 1980," Working Papers 2014-008, Human Capital and Economic Opportunity Working Group.
    24. Oreffice, Sonia & Quintana-Domeque, Climent, 2010. "Anthropometry and socioeconomics among couples: Evidence in the United States," Economics & Human Biology, Elsevier, vol. 8(3), pages 373-384, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rooth, Dan-Olof, 2011. "Work out or out of work -- The labor market return to physical fitness and leisure sports activities," Labour Economics, Elsevier, vol. 18(3), pages 399-409, June.
    2. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2010. "No Country for Fat Men? Obesity, Earnings, Skills, and Health among 450,000 Swedish Men," IZA Discussion Papers 4775, Institute of Labor Economics (IZA).
    3. Petter Lundborg & Paul Nystedt & Dan-Olof Rooth, 2014. "Body Size, Skills, and Income: Evidence From 150,000 Teenage Siblings," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1573-1596, October.
    4. Lång, Elisabeth & Nystedt, Paul, 2018. "Two by two, inch by inch: Height as an indicator of environmental conditions during childhood and its influence on earnings over the life cycle among twins," Economics & Human Biology, Elsevier, vol. 28(C), pages 53-66.
    5. Vogl, Tom S., 2014. "Height, skills, and labor market outcomes in Mexico," Journal of Development Economics, Elsevier, vol. 107(C), pages 84-96.
    6. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    7. Sohn, Kitae, 2015. "The height premium in Indonesia," Economics & Human Biology, Elsevier, vol. 16(C), pages 1-15.
    8. Böckerman, Petri & Vainiomäki, Jari, 2013. "Stature and life-time labor market outcomes: Accounting for unobserved differences," Labour Economics, Elsevier, vol. 24(C), pages 86-96.
    9. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    10. A. Balietti & S. Datta & S. Veljanoska, 2022. "Air pollution and child development in India," Post-Print hal-03662124, HAL.
    11. Olivier Bargain & Jinan Zeidan, 2017. "Stature, Skills and Adult Life Outcomes: Evidence from Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 53(6), pages 873-890, June.
    12. Kapoor, Sacha & Magesan, Arvind, 2019. "Having it easy: Discrimination and specialization in the workplace," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 153-173.
    13. Jere R. Behrman & John Hoddinott & John A. Maluccio & Reynaldo Martorell, 2009. "Brains versus Brawn: Labor Market Returns to Intellectual and Health Human Capital in a Poor Developing Country," Middlebury College Working Paper Series 0907, Middlebury College, Department of Economics.
    14. Lee, Wang-Sheng, 2014. "Big and Tall: Is there a Height Premium or Obesity Penalty in the Labor Market?," IZA Discussion Papers 8606, Institute of Labor Economics (IZA).
    15. Petter Lundborg & Paul Nystedt & Dan-Olof Rooth, 2014. "Height and Earnings: The Role of Cognitive and Noncognitive Skills," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 141-166.
    16. Balietti, Anca & Datta, Souvik & Veljanoska, Stefanija, 2022. "Air pollution and child development in India," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    17. Jun Wang & Qihui Chen & Gang Chen & Yingxiang Li & Guoshu Kong & Chen Zhu, 2020. "What is creating the height premium? New evidence from a Mendelian randomization analysis in China," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-20, April.
    18. LIU Xing & SIERMINSKA Eva, 2014. "Evaluating the effect of beauty on labor market outcomes: A review of the literature," LISER Working Paper Series 2014-11, Luxembourg Institute of Socio-Economic Research (LISER).
    19. Price, Gregory N., 2013. "The allometry of metabolism and stature: Worker fatigue and height in the Tanzanian labor market," Economics & Human Biology, Elsevier, vol. 11(4), pages 515-521.
    20. 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.

    More about this item

    Keywords

    height premium; cognitive and non-cognitive skills; physical capacity; earnings;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.