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Family disadvantage, gender, and the returns to genetic human capital

Author

Listed:
  • Victor Ronda
  • Esben Agerbo
  • Dorthe Bleses
  • Preben Bo Mortensen
  • Anders Børglum
  • Ole Mors
  • Michael Rosholm
  • David M. Hougaard
  • Merete Nordentoft
  • Thomas Werge

Abstract

In this paper, we investigate the context‐dependence of genetic influences on human capital formation in Denmark. We show that the returns to genetic endowments are smaller for individuals who have experienced childhood disadvantage. We discuss how we can rule out omitted variables or measurement error bias as explanations, because we observe the attenuation effect of childhood disadvantage in both between‐family and within‐family analyses. Our results highlight an important mechanism driving the persistence of disadvantage across generations. We show that children who experience childhood disadvantage are not able to fully realize their educational potential, even in the context of the generous Danish welfare state.

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  • Victor Ronda & Esben Agerbo & Dorthe Bleses & Preben Bo Mortensen & Anders Børglum & Ole Mors & Michael Rosholm & David M. Hougaard & Merete Nordentoft & Thomas Werge, 2022. "Family disadvantage, gender, and the returns to genetic human capital," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(2), pages 550-578, April.
    • Handle: RePEc:bla:scandj:v:124:y:2022:i:2:p:550-578
    DOI: 10.1111/sjoe.12462
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    Cited by:

    1. Abdel Abdellaoui & Oana Borcan & Pierre Chiappori & David Hugh-Jones, 2022. "Trading Social Status for Genetics in Marriage Markets: Evidence from UK Biobank," University of East Anglia School of Economics Working Paper Series 2022-04, School of Economics, University of East Anglia, Norwich, UK..
    2. Brunello, Giorgio & Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2020. "Not only in my genes: The effects of peers’ genotype on obesity," Journal of Health Economics, Elsevier, vol. 72(C).
    3. Mikkel Aagaard Houmark & Victor Ronda & Michael Rosholm, 2024. "The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills," American Economic Review, American Economic Association, vol. 114(2), pages 385-425, February.
    4. Pereira, Rita & Biroli, Pietro & von hinke, stephanie & Van Kippersluis, Hans & Galama, Titus & Rietveld, Niels & Thom, Kevin, 2022. "Gene-Environment Interplay in the Social Sciences," OSF Preprints d96z3, Center for Open Science.
    5. Barban, Nicola & De Cao, Elisabetta & Francesconi, Marco, 2021. "Gene‐Environment Effects on Female Fertility," CINCH Working Paper Series (since 2020) 74910, Duisburg-Essen University Library, DuEPublico.
    6. Barban, Nicola & De Cao, Elisabetta & Oreffice, Sonia & Quintana-Domeque, Climent, 2021. "The effect of education on spousal education: A genetic approach," Labour Economics, Elsevier, vol. 71(C).
    7. von Hinke, Stephanie & Sørensen, Emil N., 2023. "The long-term effects of early-life pollution exposure: Evidence from the London smog," Journal of Health Economics, Elsevier, vol. 92(C).
    8. Atticus Bolyard & Peter Savelyev, 2021. "Understanding the Educational Attainment Polygenic Score and its Interactions with SES in Determining Health in Young Adulthood," Working Papers 2021-026, Human Capital and Economic Opportunity Working Group.
    9. von Stumm, Sophie & Kandaswamy, Radhika & Maxwell, Jessye, 2023. "Gene-environment interplay in early life cognitive development," Intelligence, Elsevier, vol. 98(C).

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