IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v42y2021ics1570677x21000411.html
   My bibliography  Save this article

Do employers discriminate against obese employees? Evidence from individuals who are simultaneously self-employed and working for an employer

Author

Listed:
  • Mukhopadhyay, Sankar

Abstract

We test whether the lower wages of obese employees result from employer discrimination using a novel empirical strategy. Using data from two nationally representative surveys from the US, we analyze the wages of individuals who are simultaneously self-employed and working for an employer. While lower productivity and customer discrimination against obese individuals may affect wages in both types of jobs, employer discrimination cannot affect the wages of solo entrepreneurs. Our estimates suggest that, even after controlling for productivity (proxied by their concurrent wage in self-employment), white women (men) who are obese earn 11.4% (9.7%) less than their healthy-weight counterparts in their paid employment jobs. We also find that white women (but not men) who are overweight earn 9.1% less than their healthy-weight counterparts. We do not find any evidence of significant bodyweight discrimination among black and Hispanic workers. These results suggest that white workers, especially white women, are likely to face bodyweight discrimination in their workplaces. We report the results for a series of robustness checks to rule out alternative explanations, such as reverse causality, differences in healthcare costs, and occupation-specific customer discrimination.

Suggested Citation

  • Mukhopadhyay, Sankar, 2021. "Do employers discriminate against obese employees? Evidence from individuals who are simultaneously self-employed and working for an employer," Economics & Human Biology, Elsevier, vol. 42(C).
  • Handle: RePEc:eee:ehbiol:v:42:y:2021:i:c:s1570677x21000411
    DOI: 10.1016/j.ehb.2021.101017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X21000411
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ehb.2021.101017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Han, Euna & Norton, Edward C. & Powell, Lisa M., 2011. "Direct and indirect effects of body weight on adult wages," Economics & Human Biology, Elsevier, vol. 9(4), pages 381-392.
    2. Sabia, Joseph J. & Rees, Daniel I., 2012. "Body weight and wages: Evidence from Add Health," Economics & Human Biology, Elsevier, vol. 10(1), pages 14-19.
    3. Atella, Vincenzo & Pace, Noemi & Vuri, Daniela, 2008. "Are employers discriminating with respect to weight?: European Evidence using Quantile Regression," Economics & Human Biology, Elsevier, vol. 6(3), pages 305-329, December.
    4. Susan Averett & Sanders Korenman, 1996. "The Economic Reality of the Beauty Myth," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 304-330.
    5. 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).
    6. Larose, Samantha L. & Kpelitse, Koffi A. & Campbell, M. Karen & Zaric, Gregory S. & Sarma, Sisira, 2016. "Does obesity influence labour market outcomes among working-age adults? Evidence from Canadian longitudinal data," Economics & Human Biology, Elsevier, vol. 20(C), pages 26-41.
    7. Wada, Roy & Tekin, Erdal, 2010. "Body composition and wages," Economics & Human Biology, Elsevier, vol. 8(2), pages 242-254, July.
    8. Cawley, John, 2015. "An economy of scales: A selective review of obesity's economic causes, consequences, and solutions," Journal of Health Economics, Elsevier, vol. 43(C), pages 244-268.
    9. Euna Han & Edward C. Norton & Sally C. Stearns, 2009. "Weight and wages: fat versus lean paychecks," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 535-548, May.
    10. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    11. Meliyanni Johar & Hajime Katayama, 2012. "Quantile regression analysis of body mass and wages," Health Economics, John Wiley & Sons, Ltd., vol. 21(5), pages 597-611, May.
    12. Bhattacharya, Jay & Bundorf, M. Kate, 2009. "The incidence of the healthcare costs of obesity," Journal of Health Economics, Elsevier, vol. 28(3), pages 649-658, May.
    13. Charles L. Baum & William F. Ford, 2004. "The wage effects of obesity: a longitudinal study," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 885-899, September.
    14. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
    15. Cawley, John & Meyerhoefer, Chad, 2012. "The medical care costs of obesity: An instrumental variables approach," Journal of Health Economics, Elsevier, vol. 31(1), pages 219-230.
    16. Dennis Nickson & Andrew R Timming & Daniel Re & David I Perrett, 2016. "Subtle Increases in BMI within a Healthy Weight Range Still Reduce Womens Employment Chances in the Service Sector," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-14, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pekkurnaz, Didem, 2023. "Causal effect of obesity on the probability of employment in women in Turkey," Economics & Human Biology, Elsevier, vol. 51(C).
    2. Pinillos-Franco, Sara & Cantarero-Prieto, David & Lera, Javier, 2022. "Feeling discriminated means poor self-perceived health: a gender analysis using SHARE," MPRA Paper 114028, University Library of Munich, Germany.

    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. Groves, Jeremy & Wilcox, Virginia, 2023. "The impact of overweight and obesity on unemployment duration among young American workers," Economics & Human Biology, Elsevier, vol. 51(C).
    2. Pekkurnaz, Didem, 2023. "Causal effect of obesity on the probability of employment in women in Turkey," Economics & Human Biology, Elsevier, vol. 51(C).
    3. Shoshana Grossbard & Sankar Mukhopadhyay, 2017. "Marriage markets as explanation for why heavier people work more hours," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-30, December.
    4. Liisa T. Laine & Ari Hyytinen, 2022. "Temporary and persistent overweight and long-term labor market outcomes," International Journal of Health Economics and Management, Springer, vol. 22(2), pages 181-203, June.
    5. Kinge, Jonas Minet, 2016. "Body mass index and employment status: A new look," Economics & Human Biology, Elsevier, vol. 22(C), pages 117-125.
    6. Nathalie Mathieu‐Bolh, 2022. "The elusive link between income and obesity," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 935-968, September.
    7. Dolado, Juan J. & Minale, Luigi & Guerra, Airam, 2023. "Uncovering the roots of obesity-based wage discrimination: The role of job characteristics," Labour Economics, Elsevier, vol. 85(C).
    8. Jonas Minet Kinge, 2017. "Waist circumference, body mass index, and employment outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 787-799, July.
    9. Kinge, Jonas Minet, 2016. "Waist circumference, body mass index and employment outcomes," HERO Online Working Paper Series 2016:4, University of Oslo, Health Economics Research Programme.
    10. Nuñez, Roy, 2020. "Obesity and labor market in Peru," MPRA Paper 105621, University Library of Munich, Germany.
    11. Kim, Tae Hyun & Han, Euna, 2015. "Impact of body mass on job quality," Economics & Human Biology, Elsevier, vol. 17(C), pages 75-85.
    12. Caliendo, Marco & Gehrsitz, Markus, 2016. "Obesity and the labor market: A fresh look at the weight penalty," Economics & Human Biology, Elsevier, vol. 23(C), pages 209-225.
    13. Kinge, Jonas Minet, 2015. "Body mass index and employment status: a new look," HERO Online Working Paper Series 2015:3, University of Oslo, Health Economics Research Programme.
    14. Pinkston, Joshua C., 2017. "The dynamic effects of obesity on the wages of young workers," Economics & Human Biology, Elsevier, vol. 27(PA), pages 154-166.
    15. Larose, Samantha L. & Kpelitse, Koffi A. & Campbell, M. Karen & Zaric, Gregory S. & Sarma, Sisira, 2016. "Does obesity influence labour market outcomes among working-age adults? Evidence from Canadian longitudinal data," Economics & Human Biology, Elsevier, vol. 20(C), pages 26-41.
    16. Raymundo M. Campos-Vazquez & Roy Nuñez, 2019. "Obesity and labor market outcomes in Mexico/Obesidad y el mercado de trabajo en México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(2), pages 159-196.
    17. Jiangli Dou & Limin Du & Ken Wang & Hailin Sun & Chenggang Zhang, 2020. "Wage Penalties or Wage Premiums? A Socioeconomic Analysis of Gender Disparity in Obesity in Urban China," IJERPH, MDPI, vol. 17(19), pages 1-20, September.
    18. Chu, Filmer & Ohinmaa, Arto, 2016. "The obesity penalty in the labor market using longitudinal Canadian data," Economics & Human Biology, Elsevier, vol. 23(C), pages 10-17.
    19. Mosca, Irene, 2013. "Body mass index, waist circumference and employment: Evidence from older Irish adults," Economics & Human Biology, Elsevier, vol. 11(4), pages 522-533.
    20. Kelly, Inas R. & Doytch, Nadia & Dave, Dhaval, 2019. "How does body mass index affect economic growth? A comparative analysis of countries by levels of economic development," Economics & Human Biology, Elsevier, vol. 34(C), pages 58-73.

    More about this item

    Keywords

    Self-employment; Paid employment; BMI; Obesity; Discrimination; Wage;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J7 - Labor and Demographic Economics - - Labor Discrimination

    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:eee:ehbiol:v:42:y:2021:i:c:s1570677x21000411. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    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.