Working Paper: NBER ID: w14007
Authors: Anne Case; Christina Paxson; Mahnaz Islam
Abstract: We use nine waves of the British Household Panel Survey (BHPS) to investigate the large labor market height premium observed in the BHPS, where each inch of height is associated with a 1.5 percent increase in wages, for both men and women. We find that half of the premium can be explained by the association between height and educational attainment among BHPS participants. Of the remaining premium, half can be explained by taller individuals selecting into higher status occupations and industries. These effects are consistent with our earlier findings that taller individuals on average have greater cognitive function, which manifests in greater educational attainment, and better labor market opportunities.
Keywords: height premium; labor market; British Household Panel Survey; wages; educational attainment
JEL Codes: I1; J3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Educational Attainment (I21) | Occupational Choice (J29) |
| Occupational Choice (J29) | Earnings (J31) |
| Height (Y10) | Cognitive Function (D91) |
| Cognitive Function (D91) | Educational Attainment (I21) |
| Height (Y10) | Earnings (J31) |
| Height (Y10) | Earnings (J31) |
| Height (Y10) | Educational Attainment (I21) |
| Height (Y10) | Occupational Choice (J29) |