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Cinnirella, Francesco; Winter, Joachim (2009): Size matters!: body height and labor market discrimination: A cross-European analysis. CESifo Working Paper, 2733
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Taller workers earn on average higher salaries. Recent research has proposed cognitive abilities and social skills as explanations for the height-wage premium. Another possible mechanism, employer discrimination, has found little support. In this paper, we provide some evidence in favor of the discrimination hypothesis. Using a cross section of 13 countries, we show that there is a consistent height-wage premium across Europe and that it is largely due to occupational sorting. We show that height has a significant effect for the occupational sorting of employed workers but not for the self-employed. We interpret this result as evidence of employer discrimination in favor of taller workers. Our results are consistent with the theoretical predictions of recent models on statistical discrimination and employer learning.