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Early Life Health and Adult Earnings: Evidence from a Large Sample of Siblings and Twins

  • Lundborg, Petter


    (Lund University)

  • Nilsson, Anton


    (Aarhus University)

  • Rooth, Dan-Olof


    (Stockholm University)

We study the relationship between early life health and adult earnings using a unique dataset that covers almost the entire population of Swedish males born between 1950 and 1970. The health information is obtained from medical examinations during the mandatory military enlistment tests at age 18, which we have further linked to register data on adult earnings. We find that most types of major diagnoses have long-run effects on future earnings with the largest effects resulting from mental conditions. Including sibling fixed effects or twin-pair fixed effects reduces the magnitudes of the estimates, although remaining substantial.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5804.

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Length: 38 pages
Date of creation: Jun 2011
Date of revision:
Publication status: published as 'Adolescent health and adult labor market outcomes' in: Journal of Health Economics, 2014, 37, 25-40
Handle: RePEc:iza:izadps:dp5804
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References listed on IDEAS
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  1. Pinka Chatterji & Margarita Alegría & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090.
  2. Janet Currie & Mark Stabile & Phongsack Manivong & Leslie L. Roos, 2010. "Child Health and Young Adult Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
  3. Anne Case & Christina Paxson, 2008. "Height, Health, and Cognitive Function at Older Ages," American Economic Review, American Economic Association, vol. 98(2), pages 463-67, May.
  4. Sandra E. Black & Paul Devereux & Kjell Salvanes, 2006. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," CEE Discussion Papers 0061, Centre for the Economics of Education, LSE.
  5. repec:pri:rpdevs:case_paxson_height_health_and_cognitive_function is not listed on IDEAS
  6. James Smith, 2005. "The Impact of Childhood Health on Adult Labor Market Outcomes," Labor and Demography 0511001, EconWPA.
  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, Institute for the Study of Labor (IZA).
  8. Heather Royer, 2009. "Separated at Girth: US Twin Estimates of the Effects of Birth Weight," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 49-85, January.
  9. 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 101-28, January.
  10. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  11. repec:pri:rpdevs:case_paxson_height_health_and_cognitive_function.pdf is not listed on IDEAS
  12. 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.
  13. Paul J. Devereux & Sandra E. Black & Kjell G. Salvanes, 2007. "From the cradle to the labor market? The effect of birth weight on adult outcomes," Open Access publications 10197/317, School of Economics, University College Dublin.
  14. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 51(1), pages 64-81, October.
  15. repec:ucn:wpaper:10197/317 is not listed on IDEAS
  16. repec:pri:cheawb:case_paxson_height_health_and_cognitive_function is not listed on IDEAS
  17. repec:spr:pharme:v:13:y:1998:i:6:p:667-676 is not listed on IDEAS
  18. repec:pri:cheawb:case_paxson_height_health_and_cognitive_function.pdf is not listed on IDEAS
  19. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
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