A1 Refereed original research article in a scientific journal

Stature and long-term labor market outcomes: Evidence using Mendelian randomization




AuthorsPetri Böckerman, Jutta Viinikainen, Jari Vainiomäki, Mirka Hintsanen, Niina Pitkänen, Terho Lehtimäki, Jaakko Pehkonen, Suvi Rovio, Olli Raitakari

PublisherELSEVIER SCIENCE BV

Publication year2017

JournalEconomics and Human Biology

Journal name in sourceECONOMICS & HUMAN BIOLOGY

Journal acronymECON HUM BIOL

Volume24

First page 18

Last page29

Number of pages12

ISSN1570-677X

eISSN1873-6130

DOIhttps://doi.org/10.1016/j.ehb.2016.10.009


Abstract
We use the Young Finns Study (N = similar to 2000) on the measured height linked to register-based long-term labor market outcomes. The data contain six age cohorts (ages 3, 6, 9, 12, 15 and 18, in 1980) with the average age of 31.7, in 2001, and with the female share of 54.7. We find that taller people earn higher earnings according to the ordinary least squares (OLS) estimation. The OLS models show that 10 cm of extra height is associated with 13% higher earnings. We use Mendelian randomization, with the genetic score as an instrumental variable (IV) for height to account for potential confounders that are related to socioeconomic background, early life conditions and parental investments, which are otherwise very difficult to fully account for when using covariates in observational studies. The IV point estimate is much lower and not statistically significant, suggesting that the OLS estimation provides an upward biased estimate for the height premium. Our results show the potential value of using genetic information to gain new insights into the determinants of long-term labor market success. (C) 2016 Elsevier B.V. All rights reserved.



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