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Genetic Fortune: Winning or Losing Education, Income, and Health

Author

Listed:
  • Hyeokmoon Kweon

    (Vrije Universiteit Amsterdam)

  • Casper A.P. Burik

    (Vrije Universiteit Amsterdam)

  • Richard Karlsson Linner

    (Vrije Universiteit Amsterdam)

  • Ronald de Vlaming

    (Vrije Universiteit Amsterdam)

  • Aysu Okbay

    (Vrije Universiteit Amsterdam)

  • Daphne Martschenko

    (Stanford University)

  • Kathryn Paige Harden

    (University of Texas at Austin)

  • Thomas A. DiPrete

    (Columbia University)

  • Philipp D. Koellinger

    (Vrije Universiteit Amsterdam)

Abstract

We develop a polygenic index for individual income and examine random differences in this index with lifetime outcomes in a sample of ~35,000 biological siblings. We find that genetic fortune for higher income causes greater socio-economic status and better health, partly via intervenable environmental pathways such as education. The positive returns to schooling remain substantial even after controlling for now observable genetic confounds. Our findings illustrate that inequalities in education, income, and health are partly due the outcomes of a genetic lottery. However, the consequences of different genetic endowments are malleable, for example via policies that target education.

Suggested Citation

  • Hyeokmoon Kweon & Casper A.P. Burik & Richard Karlsson Linner & Ronald de Vlaming & Aysu Okbay & Daphne Martschenko & Kathryn Paige Harden & Thomas A. DiPrete & Philipp D. Koellinger, 2020. "Genetic Fortune: Winning or Losing Education, Income, and Health," Tinbergen Institute Discussion Papers 20-053/V, Tinbergen Institute, revised 01 Dec 2020.
  • Handle: RePEc:tin:wpaper:20200053
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    Cited by:

    1. Pietro Biroli & Titus Galama & Stephanie von Hinke & Hans van Kippersluis & Cornelius Rietveld & Kevin Thom, 2022. "The Economics and Econometrics of Gene-Environment Interplay," Tinbergen Institute Discussion Papers 22-019/V, Tinbergen Institute.
    2. Rita Dias Pereira & Pietro Biroli & Titus Galama & Stephanie von Hinke & Hans van Kippersluis & Cornelius A. Rietveld & Kevin Thom, 2022. "Gene-Environment Interplay in the Social Sciences," Papers 2203.02198, arXiv.org, revised Aug 2022.
    3. Silvia H. Barcellos & Leandro Carvalho & Patrick Turley, 2021. "The Effect of Education on the Relationship between Genetics, Early-Life Disadvantages, and Later-Life SES," NBER Working Papers 28750, National Bureau of Economic Research, Inc.
    4. Casper A.P. Burik & Hyeokmoon Kweon & Philipp D. Koellinger, 2021. "Disparities in socio-economic status and BMI in the UK are partly due to genetic and environmental luck," Tinbergen Institute Discussion Papers 21-035/V, Tinbergen Institute.
    5. Andrea Pogliano, 2024. "Born That Way: Beliefs about Genetics’ Importance and Redistribution Preferences," Tinbergen Institute Discussion Papers 24-017/I, Tinbergen Institute.
    6. Biroli, Pietro & Zwyssig, Laura, 2021. "Moral Hazard Heterogeneity: Genes and Health Insurance Influence Smoking after a Health Shock," IZA Discussion Papers 14176, Institute of Labor Economics (IZA).
    7. Andrea Fazio, 2021. "Beautiful inequality: Are beautiful people more willing to redistribute?," Working Papers in Public Economics 194, Department of Economics and Law, Sapienza University of Roma.
    8. Giannelis, Alexandros & Willoughby, Emily A. & Corley, Robin & Hopfer, Christian & Hewitt, John K. & Iacono, William G. & Anderson, Jacob & Rustichini, Aldo & Vrieze, Scott I. & McGue, Matt & Lee, Jam, 2023. "The association between saving disposition and financial distress: A genetically informed approach," Journal of Economic Psychology, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Income; education; health; inequality; heritability; genetics; polygenic index;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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