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The Economics and Econometrics of Gene–Environment Interplay

Author

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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    Cited by:

    1. Samuel Baker & Pietro Biroli & Hans van Kippersluis & Stephanie von Hinke, 2022. "Beyond Barker: Infant Mortality at Birth and Ischaemic Heart Disease in Older Age," Working Papers 2022-015, Human Capital and Economic Opportunity Working Group.
    2. A. Roy Thurik & David B. Audretsch & Jörn H. Block & Andrew Burke & Martin A. Carree & Marcus Dejardin & Cornelius A. Rietveld & Mark Sanders & Ute Stephan & Johan Wiklund, 2024. "The impact of entrepreneurship research on other academic fields," Small Business Economics, Springer, vol. 62(2), pages 727-751, February.
    3. Brescianini, Sonia & Cappellari, Lorenzo & Checchi, Daniele, 2024. "Heritability in the Labour Market: Evidence from Italian Twins," IZA Discussion Papers 17476, IZA Network @ LISER.
    4. Mariagrazia Cavallo & Elizabeth Dhuey & Luca Fumarco & Levi Halewyck & Simon ter Meulen, 2026. "The Economics of Age at School Entry: Insights from Evidence and Methods," CESifo Working Paper Series 12545, CESifo.
    5. Bolt, U. & French, E. & Warrier, V. & Yang, Q. & Zhang, W., 2025. "Genetic Endowments and Lifetime Earnings: Understanding the Mechanisms," Cambridge Working Papers in Economics 2547, Faculty of Economics, University of Cambridge.
    6. von Hinke, Stephanie & Sørensen, Emil N., 2023. "The long-term effects of early-life pollution exposure: Evidence from the London smog," Journal of Health Economics, Elsevier, vol. 92(C).

    More about this item

    Keywords

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • I1 - Health, Education, and Welfare - - Health
    • I2 - Health, Education, and Welfare - - Education
    • J1 - Labor and Demographic Economics - - Demographic Economics

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