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The Nonlinear Link between Height and Wages: An Empirical Investigation

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  • Hübler, Olaf

    (Leibniz University of Hannover)

Abstract

This article investigates the relationship between individual wages and height using the German Socio-Economic Panel where five hypotheses are tested. Some explanations of a positive link exist and empirical studies confirm this hypothesis. In contrast to previous investigations which are only based on a linear effect this paper finds that the individual height effects on wages are curvilinear. During the considered period from 1985 to 2004 we observe a slightly nonlinear falling trend. After controlling for time effects a nonlinear relationship between individual height and wages remains with a maximum below the average height for females and above the average for males. We detect endowment and discrimination influences. The latter are firstly due to employer discrimination and secondarily less likely due to customer discrimination.

Suggested Citation

  • Hübler, Olaf, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2394
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    References listed on IDEAS

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    Cited by:

    1. Schultz, T. Paul, 2010. "Population and Health Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4785-4881, Elsevier.
    2. Johansson, Edvard & Böckerman, Petri & Kiiskinen, Urpo & Heliövaara, Markku, 2007. "The Effect of Obesity on Wages and Employment: The Difference Between Having a High BMI and Being Fat," Working Papers 528, Hanken School of Economics.
    3. Yakovlev, Pavel & Leguizamon, Susane, 2012. "Ignorance is not bliss: On the role of education in subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 806-815.
    4. Audrey Dumas & Saïd Hanchane, 2010. "How does job‐training increase firm performance? The case of Morocco," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(5), pages 585-602, August.
    5. Johansson, Edvard & Böckerman, Petri & Kiiskinen, Urpo & Heliövaara, Markku, 2009. "Obesity and labour market success in Finland: The difference between having a high BMI and being fat," Economics & Human Biology, Elsevier, vol. 7(1), pages 36-45, March.

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    More about this item

    Keywords

    discrimination; wages; nonlinear; height; cyclical effects;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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