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The effect of weight on labor market outcomes: An application of genetic instrumental variables

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  • Petri Böckerman
  • John Cawley
  • Jutta Viinikainen
  • Terho Lehtimäki
  • Suvi Rovio
  • Ilkka Seppälä
  • Jaakko Pehkonen
  • Olli Raitakari

Abstract

This paper contributes to the literature on the labor market consequences of obesity by using a novel instrument: genetic risk score, which reflects the predisposition to higher body mass index (BMI) across many genetic loci. We estimate instrumental variable models of the effect of BMI on labor market outcomes using Finnish data that have many strengths, for example, BMI that is measured rather than self‐reported, and data on earnings and social income transfers that are from administrative tax records and are thus free of the problems associated with nonresponse, reporting error or top coding. The empirical results are sensitive to whether we use a narrower or broader genetic risk score, and to model specification. For example, models using the narrower genetic risk score as an instrument imply that a one‐unit increase in BMI is associated with 6.9% lower wages, 1.8% fewer years employed, and a 3 percentage point higher probability of receiving any social income transfers. However, when we use a newer, broader genetic risk score, we cannot reject the null hypothesis of no effect. Future research using genetic risk scores should examine the sensitivity of their results to the risk score used.

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  • Petri Böckerman & John Cawley & Jutta Viinikainen & Terho Lehtimäki & Suvi Rovio & Ilkka Seppälä & Jaakko Pehkonen & Olli Raitakari, 2019. "The effect of weight on labor market outcomes: An application of genetic instrumental variables," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 65-77, January.
    • Handle: RePEc:wly:hlthec:v:28:y:2019:i:1:p:65-77
    DOI: 10.1002/hec.3828
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    4. Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2020. "The impact of BMI on mental health: Further evidence from genetic markers," Economics & Human Biology, Elsevier, vol. 38(C).
    5. Wang, Lanjie & Zhang, Xuan & Kim, Seonghoon & Koh, Kanghyock, 2024. "Weight perception and weight management via information nudges," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 332-353.
    6. Giorgio Brunello & Dimitris Christelis & Anna Sanz‐de‐Galdeano & Anastasia Terskaya, 2024. "Does college selectivity reduce obesity? A partial identification approach," Health Economics, John Wiley & Sons, Ltd., vol. 33(10), pages 2306-2320, October.
    7. Sanz-de-Galdeano, Anna & Terskaya, Anastasia & Upegui, Angie, 2020. "Association of a Genetic Risk Score with BMI along the Life-Cycle: Evidence from Several US Cohorts," IZA Discussion Papers 13671, Institute of Labor Economics (IZA).
    8. Stephanie Coffey & Amy Ellen Schwartz, 2021. "Towering Intellects? Sizing Up the Relationship Between Height and Academic Success," Center for Policy Research Working Papers 244, Center for Policy Research, Maxwell School, Syracuse University.
    9. Cawley, John & Han, Euna & Kim, Jiyoon & Norton, Edward C., 2023. "Genetic nurture in educational attainment," Economics & Human Biology, Elsevier, vol. 49(C).
    10. Antonio Pacifico, 2023. "Obesity and labour market outcomes in Italy: a dynamic panel data evidence with correlated random effects," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(4), pages 557-574, June.
    11. Anna Sanz-de-Galdeano & Anastasia Terskaya & Angie Upegui, 2020. "Association of a genetic risk score with BMI along the life-cycle: Evidence from several US cohorts," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-19, September.
    12. Groves, Jeremy & Wilcox, Virginia, 2023. "The impact of overweight and obesity on unemployment duration among young American workers," Economics & Human Biology, Elsevier, vol. 51(C).
    13. Willage, Barton, 2018. "The effect of weight on mental health: New evidence using genetic IVs," Journal of Health Economics, Elsevier, vol. 57(C), pages 113-130.
    14. Paolo Nicola Barbieri & Hieu Nguyen, 2022. "Diabetes and Young Adults’ Labor Supply: Evidence from a Novel Instrumental Variable Strategy," Journal of Labor Research, Springer, vol. 43(1), pages 1-23, March.
    15. Demirgüç-Kunt, Asli & Torre, Iván, 2022. "Measuring human capital in middle income countries," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 1036-1067.
    16. Jiangli Dou & Limin Du & Ken Wang & Hailin Sun & Chenggang Zhang, 2020. "Wage Penalties or Wage Premiums? A Socioeconomic Analysis of Gender Disparity in Obesity in Urban China," IJERPH, MDPI, vol. 17(19), pages 1-20, September.
    17. Christina Hansen Edwards & Johan Håkon Bjørngaard & Jonas Minet Kinge, 2021. "The relationship between body mass index and income: Using genetic variants from HUNT as instrumental variables," Health Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 1933-1949, August.
    18. 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).
    19. Li, Wenchao, 2023. "Gender of children and risky health behaviors: Evidence from China," Economic Modelling, Elsevier, vol. 119(C).
    20. Baert, Stijn & Herregods, Jolien & Sterkens, Philippe, 2024. "What does job applicants’ body art signal to employers?," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 742-755.
    21. Li, Ruxue & Zhang, Yating & Cai, Xue & Luo, Dan & Zhou, Wuai & Long, Tianxue & Zhang, Huijing & Jiang, Hua & Li, Mingzi, 2021. "The nudge strategies for weight loss in adults with obesity and overweight: A systematic review and meta-analysis," Health Policy, Elsevier, vol. 125(12), pages 1527-1535.
    22. Böckerman, Petri & Viinikainen, Jutta & Vainiomäki, Jari & Hintsanen, Mirka & Pitkänen, Niina & Lehtimäki, Terho & Pehkonen, Jaakko & Rovio, Suvi & Raitakari, Olli, 2017. "Stature and long-term labor market outcomes: Evidence using Mendelian randomization," Economics & Human Biology, Elsevier, vol. 24(C), pages 18-29.
    23. Raymundo M. Campos-Vazquez & Roy Nuñez, 2019. "Obesity and labor market outcomes in Mexico/Obesidad y el mercado de trabajo en México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(2), pages 159-196.
    24. Young-Joo Kim, 2021. "Heterogeneous Impacts of Body Mass Index on Work Hours," IJERPH, MDPI, vol. 18(18), pages 1-12, September.

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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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