title: Stature and long-term labor market outcomes: Evidence using Mendelian randomization.
abstract: We use the Young Finns Study (N=∼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 10cm 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.
authors.affiliation: Turku School of Economics, Labour Institute for Economic Research, Helsinki, Finland. Electronic address: petri.bockerman@labour.fi.
authors.forename: Petri
authors.initials: P
authors.lastname: Böckerman
authors.affiliation: Jyväskylä University School of Business and Economics, Jyväskylä, Finland.
authors.forename: Jutta
authors.initials: J
authors.lastname: Viinikainen
authors.affiliation: School of Management, University of Tampere, Finland.
authors.forename: Jari
authors.initials: J
authors.lastname: Vainiomäki
authors.affiliation: Unit of Psychology, University of Oulu, Oulu, Finland.
authors.forename: Mirka
authors.initials: M
authors.lastname: Hintsanen
authors.affiliation: Research Centre of Applied and Preventive Cardiovascular Medicine, University of Turku, Turku, Finland.
authors.forename: Niina
authors.initials: N
authors.lastname: Pitkänen
authors.affiliation: Department of Clinical Chemistry, Fimlab Laboratories and School of Medicine, University of Tampere, Finland.
authors.forename: Terho
authors.initials: T
authors.lastname: Lehtimäki
authors.affiliation: Jyväskylä University School of Business and Economics, Jyväskylä, Finland.
authors.forename: Jaakko
authors.initials: J
authors.lastname: Pehkonen
authors.affiliation: Research Centre of Applied and Preventive Cardiovascular Medicine, University of Turku, Turku, Finland.
authors.forename: Suvi
authors.initials: S
authors.lastname: Rovio
authors.affiliation: Research Centre of Applied and Preventive Cardiovascular Medicine, University of Turku and Department of Clinical Physiology and Nuclear Medicine, Turku University Hospital, Turku, Finland.
authors.forename: Olli
authors.initials: O
authors.lastname: Raitakari
mesh_terms: D000328:Adult; D001827:Body Height / Q000235:genetics*; D004651:Employment / Q000191:economics*; D005387:Finland; D006801:Humans; D008297:Male; D057182:Mendelian Randomization Analysis; D010560:Personnel Selection / Q000592:standards*; D012456:Salaries and Fringe Benefits / Q000706:statistics & numerical data*; D012945:Social Values; D055815:Young Adult
keywords: Earnings; Employment; Height; Height premium; Stature