Up in the Skies? The Relationship between Body Height and Earnings in Germany

This paper analyses whether taller workers earn more than their shorter counterparts. Using GSOEP data from 1991 to 2002, earnings functions are estimated for male and female workers for both West and East Germany. The Hausman-Taylor IV estimator is applied to account for unobservable heterogeneity including also time-invariant indicators. The results do not imply wage differentials based on height for female workers and male East German workers. For the height range up to 195 cm there is, however, a wage premium associated with stature for male workers from West Germany of about 4 per cent for each additional standard deviation increment in height.