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date: 18 September 2020

Abstract and Keywords

This chapter discusses the relationship between height and wages under a theoretical and empirical perspective. Many channels explain why height and wage are positively correlated. A major strand is based on unobserved cognitive and physical abilities that are connected with height and that influence wages. Further indirect links are possible via schooling, health, and risk aversion. Finally, discrimination and satisfaction are possible potential causes that a statistical association is well-founded. Most empirical investigations only analyze a direct linear relationship and find a positive height premium roughly between less than 1% and 10% due to an increase of 10 cm in height. The applied methods can partially explain the differences. Measurement errors, unobserved heterogeneity, endogeneity, and nonlinearities are methodological problems that should be considered. Moreover, the height premium varies with the specification. The incorporation of nutrition, health, education, leadership, physical capacity, age, weight, and, especially, gender influence estimation results.

Keywords: height, wages, abilities, inheritance, environment, schooling, health, risk aversion, satisfaction, discrimination

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