Genetic endowments and lifetime earnings: Understanding the mechanisms
This talk investigates how genetic endowments influence lifetime earnings using a life cycle model and longitudinal data that tracks a cohort from birth to retirement.
Eric French will examine genetic impacts on skill formation as well as parental investments, educational attainment, and occupation.
The research finds that a one standard deviation increase in the polygenic score for educational attainment raises lifetime earnings by 18.9%. Although part of this effect is due to genetic endowments impacting skill formation, the majority is due to genetic endowments impacting choices.
Furthermore, their estimates show that genetic endowments and parental investments are substitutes in the production of earnings during early childhood but are complements later in life, highlighting the crucial importance of early-life interventions to effectively mitigate genetic inequalities.
Related links
- QSS and CLS seminar series
- Quantitative Social Science
- Centre for Longitudinal Studies
- Social Research Institute
Image
Money via Flickr (CC BY 2.0).
Professor Eric French
Montague Burton Professor of Industrial Relations and Labour Economics; Director of Research Strategy
Faculty of Economics, University of Cambridge
Further information
Ticketing
Pre-booking essential
Cost
Free
Open to
All
Availability
Yes