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The Economics and Econometrics of Gene–Environment Interplay

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Listed:
  • Pietro Biroli
  • Titus Galama
  • Stephanie von Hinke
  • Hans van Kippersluis
  • Cornelius A Rietveld
  • Kevin Thom

Abstract

We discuss how to estimate the interplay between genes (nature) and environments (nurture), with an empirical illustration of the moderating effect of school starting age on one’s genetic predisposition towards educational attainment. We argue that gene–environment (G×E) studies can be instrumental for (i) assessing treatment effect heterogeneity, (ii) testing theoretical predictions, and (iii) uncovering mechanisms, thereby improving understanding of how (policy) interventions affect population subgroups. Empirically, we find that being old-for-grade and having a higher genetic propensity for education benefits children on assessment tests as they progress through school. In this setting, families appear to increase genetic inequalities while schools seem to reduce them.

Suggested Citation

  • Pietro Biroli & Titus Galama & Stephanie von Hinke & Hans van Kippersluis & Cornelius A Rietveld & Kevin Thom, 2026. "The Economics and Econometrics of Gene–Environment Interplay," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 93(1), pages 144-180.
    • Handle: RePEc:oup:restud:v:93:y:2026:i:1:p:144-180.
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    File URL: http://hdl.handle.net/10.1093/restud/rdaf034
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