IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1660.html
   My bibliography  Save this paper

The Heterosis Effect in Human Capital and Wealth Accumulation

Author

Listed:
  • Zhu, Chen
  • Böckerman, Petri

Abstract

In genetics, heterosis refers to the phenomenon where crossbreeding within a species produces offspring with greater genetic fitness and superior phenotypic characteristics compared to their parents. We propose a novel socioeconomic heterosis hypothesis and examine whether genetic diversity at the individual level benefits economic success. Empirical results from UK Biobank (N=488,152) indicate that people with higher genome-wide heterozygosity perform better in modern societies. We find consistent, positive links with education, earnings, leadership, height, and ownership of a home and car; a one standard deviation increase in heterozygosity is associated with 0.75% higher income and modest gains in schooling and assets. Results hold with additional controls and Bonferroni correction for multiple hypothesis testing; no effects are found for migration, diabetes, or neuroticism. The relationship rises steadily across the observed range and is stronger for men, suggesting sexual selection in socioeconomic settings. Because heterozygosity is fixed at conception, our evidence points to an underappreciated endowment shaping human capital and wealth accumulation. The contribution is to introduce and document individual-level heterosis effects in economics, offering a new channel for inequality and socioeconomic outcomes.

Suggested Citation

  • Zhu, Chen & Böckerman, Petri, 2025. "The Heterosis Effect in Human Capital and Wealth Accumulation," GLO Discussion Paper Series 1660, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:1660
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/324960/1/GLO-DP-1660.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Paulo Guimarães & Pedro Portugal, 2010. "A simple feasible procedure to fit models with high-dimensional fixed effects," Stata Journal, StataCorp LLC, vol. 10(4), pages 628-649, December.
    2. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    3. Zhu, Chen & Zhang, Xiaohui & Zhao, Qiran & Chen, Qihui, 2018. "Hybrid marriages and phenotypic heterosis in offspring: Evidence from China," Economics & Human Biology, Elsevier, vol. 29(C), pages 102-114.
    4. Clare Bycroft & Colin Freeman & Desislava Petkova & Gavin Band & Lloyd T. Elliott & Kevin Sharp & Allan Motyer & Damjan Vukcevic & Olivier Delaneau & Jared O’Connell & Adrian Cortes & Samantha Welsh &, 2018. "The UK Biobank resource with deep phenotyping and genomic data," Nature, Nature, vol. 562(7726), pages 203-209, October.
    5. Daniel Barth & Nicholas W. Papageorge & Kevin Thom, 2020. "Genetic Endowments and Wealth Inequality," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1474-1522.
    6. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    7. Nicholas W Papageorge & Kevin Thom, 2020. "Genes, Education, and Labor Market Outcomes: Evidence from the Health and Retirement Study," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1351-1399.
    8. Tiago Neves Sequeira & Marcelo Santos & Alexandra Ferreira-Lopes, 2019. "Human capital and genetic diversity," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 311-330, September.
    9. Mikkel Aagaard Houmark & Victor Ronda & Michael Rosholm, 2024. "The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills," American Economic Review, American Economic Association, vol. 114(2), pages 385-425, February.
    10. Ruth McQuillan & Niina Eklund & Nicola Pirastu & Maris Kuningas & Brian P McEvoy & Tõnu Esko & Tanguy Corre & Gail Davies & Marika Kaakinen & Leo-Pekka Lyytikäinen & Kati Kristiansson & Aki S Havulinn, 2012. "Evidence of Inbreeding Depression on Human Height," PLOS Genetics, Public Library of Science, vol. 8(7), pages 1-14, July.
    11. 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.
    12. Aldo Rustichini & William G. Iacono & James J. Lee & Matt McGue, 2023. "Educational Attainment and Intergenerational Mobility: A Polygenic Score Analysis," Journal of Political Economy, University of Chicago Press, vol. 131(10), pages 2724-2779.
    Full references (including those not matched with items on IDEAS)

    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. Nicola Barban & Elisabetta De Cao & Marco Francesconi, 2021. "Gene-Environment Effects on Female Fertility," CESifo Working Paper Series 9337, CESifo.
    2. Pietro Biroli & Titus Galama & Stephanie von Hinke & Hans van Kippersluis & Kevin Thom, 2022. "Economics and Econometrics of Gene-Environment Interplay," Bristol Economics Discussion Papers 22/759, School of Economics, University of Bristol, UK.
    3. Victor Ronda & Esben Agerbo & Dorthe Bleses & Preben Bo Mortensen & Anders Børglum & Ole Mors & Michael Rosholm & David M. Hougaard & Merete Nordentoft & Thomas Werge, 2022. "Family disadvantage, gender, and the returns to genetic human capital," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(2), pages 550-578, April.
    4. Pereira, Rita & Biroli, Pietro & von hinke, stephanie & Van Kippersluis, Hans & Galama, Titus & Rietveld, Niels & Thom, Kevin, 2022. "Gene-Environment Interplay in the Social Sciences," OSF Preprints d96z3, Center for Open Science.
    5. Dilnoza Muslimova & Niels Rietveld, 2025. "Gene-environment interplay and public policies," Papers 2503.22441, arXiv.org, revised Jul 2025.
    6. Paul Minard, 2022. "Molecular genetics and mid-career economic mobility," Papers 2209.00057, arXiv.org.
    7. repec:osf:osfxxx:d96z3_v1 is not listed on IDEAS
    8. Buser, Thomas & Ahlskog, Rafael & Johannesson, Magnus & Koellinger, Philipp & Oskarsson, Sven, 2024. "The causal effect of genetic variants linked to cognitive and non-cognitive skills on education and labor market outcomes," Labour Economics, Elsevier, vol. 90(C).
    9. Thomas Buser & Rafael Ahlskog & Magnus Johannesson & Philipp Koellinger & Sven Oskarsson, 2021. "Using Genes to Explore the Effects of Cognitive and Non-cognitive Skills on Education and Labor Market Outcomes," Tinbergen Institute Discussion Papers 21-088/I, Tinbergen Institute, revised 29 Mar 2023.
    10. Mariacristina De Nardi & Svetlana Pashchenko & Ponpoje Porapakkarm, 2025. "The Lifetime Costs of Bad Health," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(3), pages 1987-2026.
    11. Galor, Oded & Klemp, Marc, 2014. "The Biocultural Origins of Human Capital Formation," IZA Discussion Papers 8433, Institute of Labor Economics (IZA).
    12. Samuel Bazzi & Arya Gaduh & Alexander D. Rothenberg & Maisy Wong, 2019. "Unity in Diversity? How Intergroup Contact Can Foster Nation Building," American Economic Review, American Economic Association, vol. 109(11), pages 3978-4025, November.
    13. Galor, Oded & Klemp, Marc, 2013. "Be Fruitful and Multiply? Moderate Fecundity and Long-Run Reproductive Success," MPRA Paper 52049, University Library of Munich, Germany.
    14. Brox, Enzo & Krieger, Tommy, 2022. "Birthplace diversity and team performance," Labour Economics, Elsevier, vol. 79(C).
    15. Giorgia Menta & Pietro Biroli & Divya Mehta & Conchita D'Ambrosio & Deborah Cobb-Clark, 2025. "Aggregating Epigenetic Clocks to Study Human Capital Formation," Papers 2509.14422, arXiv.org.
    16. Barban, Nicola & De Cao, Elisabetta & Oreffice, Sonia & Quintana-Domeque, Climent, 2021. "The effect of education on spousal education: A genetic approach," Labour Economics, Elsevier, vol. 71(C).
    17. 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).
    18. Chaliasos, Michael & Jansson, Thomas & Karabulut, Yigitcan, 2025. "Wealth inequality: Opportunity for me or for others?," IMFS Working Paper Series 216, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    19. Samuel Bazzi & Arya Gaduh & Alexander D. Rothenberg & Maisy Wong, 2016. "Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia," American Economic Review, American Economic Association, vol. 106(9), pages 2658-2698, September.
    20. Bingley, Paul & Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2023. "On the Origins of Socio-Economic Inequalities: Evidence from Twin Families," IZA Discussion Papers 16520, Institute of Labor Economics (IZA).
    21. Battiston, Giacomo & Bizzarri, Matteo & Franceschin, Riccardo, 2025. "Third-party interest, resource value, and the likelihood of conflict," European Journal of Political Economy, Elsevier, vol. 86(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

    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:zbw:glodps:1660. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.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.