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Height and Earnings: The Role of Cognitive and Noncognitive Skills

Author

Listed:
  • Petter Lundborg
  • Paul Nystedt
  • Dan-Olof Rooth

Abstract

We use large-scale register data on 450,000 Swedish males who underwent mandatory military enlistment at age 18, and a subsample of 150,000 siblings, to examine why tall people earn more. We show the importance of both cognitive and noncognitive skills, as well as family background and muscular strength for the height-earnings relationship. In addition, we show that a substantial height premium remains after these factors have been accounted for, which originates from very short people having low earnings. This is mostly explained by the sorting of short people into low-paid occupations, which may indicate discrimination by stature.

Suggested Citation

  • 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.
  • Handle: RePEc:uwp:jhriss:v:49:y:2014:i:1:p:141-166
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    References listed on IDEAS

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    1. 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.
    2. Andreas Schick & Richard H. Steckel, 2010. "Height as a Proxy for Cognitive and Non-Cognitive Ability," NBER Working Papers 16570, National Bureau of Economic Research, Inc.
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    4. Martin Nordin & Dan-Olof Rooth, 2007. "The Income Gap Between Natives and Second Generation Immigrants in Sweden: Is Skill the Explanation?," RFBerlin Discussion Paper Series 0706, ROCKWOOL Foundation Berlin (RFBerlin).
    5. Erik Lindqvist & Roine Vestman, 2011. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 101-128, January.
    6. 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.
    7. 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, IZA Network @ LISER.
    8. 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.
    9. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2001. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height, Third Version," PIER Working Paper Archive 04-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 15 Mar 2004.
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    11. 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).
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