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

Health Economics
Petri BöckermanOlli 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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Citations

Mar 11, 2020·Medical Decision Making : an International Journal of the Society for Medical Decision Making·Christoph F Kurz, Michael Laxy
Sep 30, 2020·International Journal of Environmental Research and Public Health·Jiangli DouChenggang Zhang
Jun 25, 2019·European Psychiatry : the Journal of the Association of European Psychiatrists·Xue GaoTong Wang
Feb 3, 2021·Economics and Human Biology·Debra G Bozzi, Lauren Hersch Nicholas
Jun 24, 2021·International Journal of Obesity : Journal of the International Association for the Study of Obesity·Desmond D CampbellSrinivasa Vittal Katikireddi
Jul 23, 2021·European Journal of Public Health·Jutta ViinikainenJuha Karvanen

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