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Research ArticleArticles

Height and Earnings: The Role of Cognitive and Noncognitive Skills

Petter Lundborg, Paul Nystedt and Dan-Olof Rooth
Journal of Human Resources, January 2014, 49 (1) 141-166; DOI: https://doi.org/10.3368/jhr.49.1.141
Petter Lundborg
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Paul Nystedt
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Dan-Olof Rooth
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  • Figure 1
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    Figure 1

    Logarithm of average annual earnings by height, cognitive skill, noncognitive skill, and handgrip strength. Total population. 28–38 years old in 2003

    Notes: The upper-left graph shows average earnings for each centimeter in height. Cognitive skill is the enlistment test score in cognitive ability and the upper-right graph shows average earnings for every value of the cognitive test score (1–9). Noncognitive skill is the psychological evaluation when enlisting and the lower-left graph shows average earnings for every value of the noncognitive measure (1–9). The lower-right graph shows average earnings for every integer of the handgrip strength score.

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    Figure 2

    Average cognitive skill, noncognitive skill and handgrip strength by height. Total population. 28–38 years old in 2003

    Notes: The height variable has been trimmed at the 1st and 99th percentile. Cognitive skill is the enlistment test score in cognitive ability, Noncognitive skill is the psychological evaluation when enlisting, and Handgrip strength is the enlistment test result when squeezing a dynamometer with the strongest hand. The graphs show average skills/strength for each centimeter in height.

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    Figure 3

    The distribution of the within-family difference in height, cognitive, and noncognitive skills

    Notes: The within-family difference is calculated as the difference between the maximum and minimum value for each variable—that is, between brothers. 92 percent of the data consists of just two brothers within a family.

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    Figure 4

    The height-earnings association. Total population data. Model A

    Notes: Earning differences relative to height = 180 cm (reference line). Data end coded at bottom/top 1 percent of the height distribution. This regression model corresponds to Model A in Table 2, exchanging the continuous height variable with centimeter fixed effects.

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    Figure 5

    The height-earnings association. Total population data. Model G

    Notes: This regression model uses the full set of variables (corresponds to Model G in Table 2), exchanging the continuous height variable with centimeter fixed effects.

Tables

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    Table 1

    Descriptive Statistics of the Population Divided at Median Height. Men 28–38 Years Old, 2003.

    Variable− 179 cm180 cm −
    Height in cm174.4  (3.8)184.7  (4.0)
    Logarithm annual earnings  12.30  (0.79)  12.36  (0.78)
    Age  33.2  (3.2)  33.0  (3.2)
    Cognitive skill    5.0  (1.9)    5.4  (1.9)
    Noncognitive skill    4.9  (1.8)    5.2  (1.8)
    Handgrip strength591.38(89.91)641.03(95.84)
    Parental characteristics:
    Father’s (log) earnings  11.04  (0.50)  11.08  (0.50)
    Mother’s (log) earnings    9.82  (1.25)    9.86  (1.23)
    Father’s years of schooling  11.2  (2.2)  11.4  (2.3)
    Mother’s years of schooling  11.2  (2.1)  11.4  (2.3)
    Number of observations225,268223,434
    • Notes: Standard deviations in parentheses. The variables measuring cognitive skills, noncognitive skills, and handgrip strength are standardized when used in the empirical analysis.

    • View popup
    Table 2

    The Height-Earnings Association per 10 cm Height Increase. Men 28–38 Years Old, 2003. Logarithm of Annual Earnings.

    VariableABCDEFGH
    Height0.062***
    (0.002)
    0.052***
    (0.002)
    0.062***
    (0.003)
    0.042***
    (0.006)
    0.028***
    (0.006)
    0.022***
    (0.005)
    0.015***
    (0.006)
    0.009
    (0.006)
    Parental characteristics
        Father’s (log) earnings—0.132***
    (0.003)
    ——————
        Mother’s (log) earnings—0.001
    (0.001)
    ——————
        Father’s years of schooling—0.007***
    (0.001)
    ——————
        Mother’s years of schooling0.008***
    (0.001)
    Cognitive skill————0.101***
    (0.004)
    0.077***
    (0.004)
    0.077***
    (0.004)
    (0.019)***
    (0.004)
    Noncognitive skill—————0.075***
    (0.003)
    0.074***
    (0.003)
    0.047***
    (0.003)
    Handgrip strength——————0.013***
    (0.003)
    0.015***
    (0.003)
    Reduction (%) in the Model A height-earnings association1603255657685
    Occupation fixed effectsNoNoNoNoNoNoNoYes
    Sibling fixed effectsNoNoNoYesYesYesYesYes
    R squared0.020.030.020.020.040.050.050.20
    Number of cases448,702448,702145,210145,210145,210145,210145,210145,210
    • Notes: Columns A through C report estimates from the regression model: Log Earningsi = a + b*Heightj + c*Xi + ei using the total population data. Model A only includes height and age fixed effects and is estimated using OLS, while Model B adds the parental variables. Model C contains height and age fixed effects for the sibling sample and is estimated using OLS. Columns D through H report estimates from the regression model: Log Earningsij = a + b*Heightij + c*Xij + fj + eij using the sibling sample. Model D adds sibling fixed effects to Model C and is estimated using the xtreg command in Stata 11. Model E then also adds cognitive skill, while Model F adds noncognitive skill to model E. Model G adds handgrip strength to Model F and, finally, Model H adds occupation fixed effects to Model G.

    • ↵*** p-value < 0.01,

    • ** p-value < 0.05,

    • * p-value < 0.10.

    • View popup
    Table 3

    The Height-Earnings Association at Different Height Intervals. Men 28–38 Years Old, 2003. Logarithm of Annual Earnings. Sibling Sample.

    Height-earnings association (per 10 cm increase) at:ABCDEF
    165–172 centimeters0.132***
    (0.018)
    0.098***
    (0.023)
    0.071***
    (0.023)
    0.058**
    (0.023)
    0.050**
    (0.023)
    0.033
    (0.021)
    173–180 centimeters0.072***
    (0.009)
    0.050***
    (0.013)
    0.037***
    (0.013)
    0.030**
    (0.013)
    0.023**
    (0.013)
    0.015
    (0.012)
    181–188 centimeters0.041***
    (0.010)
    0.034**
    (0.014)
    0.022
    (0.014)
    0.016
    (0.014)
    0.010
    (0.014)
    0.001
    (0.013)
    189–195 centimeters0.013
    (0.019)
    -0.031
    (0.026)
    -0.035
    (0.026)
    -0.035
    (0.026)
    -0.040
    (0.026)
    -0.015)
    (0.024)
    Sibling fixed effectsNoYesYesYesYesYes
    Occupation fixed effectsNoNoNoNoNoYes
    Number of cases145,210
    • Notes: Columns B through F report estimates from the regression model: Log Earningsij = a + b*Heighij + c*Xij + fj + eij using the sibling sample. Height is in this specification modeled as having four different slopes at the intervals 165–72, 173–80, 181–88, and 189–95 using the mkspline function in Stata. Model A contains height and age fixed effects for the sibling sample and is estimated using OLS. Model B adds sibling fixed effects and is estimated using the xtreg command in Stata 11. Model C adds cognitive skill, while Model D adds cognitive and noncognitive skill to Model B. Model E adds handgrip strength to Model D. Finally, Model F adds occupation fixed effects to Model E.

    • ↵*** p-value < 0.01,

    • ↵** p-value < 0.05,

    • * p-value < 0.10.

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Journal of Human Resources: 49 (1)
Journal of Human Resources
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Height and Earnings: The Role of Cognitive and Noncognitive Skills
Petter Lundborg, Paul Nystedt, Dan-Olof Rooth
Journal of Human Resources Jan 2014, 49 (1) 141-166; DOI: 10.3368/jhr.49.1.141

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Height and Earnings: The Role of Cognitive and Noncognitive Skills
Petter Lundborg, Paul Nystedt, Dan-Olof Rooth
Journal of Human Resources Jan 2014, 49 (1) 141-166; DOI: 10.3368/jhr.49.1.141
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