The relationship between physical work and the height premium: Finnish evidence

This paper examines the role of physical strength in the determination of the height wage premium by using the “Health 2000 in Finland” data that contain both self-reported information on the physical strenuousness of work, and information on muscle mass from medical examinations. The results suggest that there are generally no distinct differences in the height premium between four different work strain categories. We also find that muscle mass is positively associated with wages per se. The premium is both statistically and economically more significant for men than for women. In terms of occupational sorting, we observe that the shortest men do physically very demanding work and the tallest do sedentary work, even after controlling for the influences of age and education.

Research highlights▶ The positive effect of height on wages does not vary between different work strain categories. ▶ Muscle mass is positively associated with wages for men. ▶ The shortest men do physically very demanding work and the tallest do sedentary work.