Are Employers Discriminating with Respect to Weight? European Evidence using Quantile Regression
University of Rome, Tor Vergata - Centre for International Studies on Economic Growth (CEIS); Department of Economics and Finance; University of Rome, Tor Vergata - Faculty of Economics
Stanford University - CHP-PCOR; University of Rome "Tor Vergata"
University of Rome Tor Vergata; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
CEIS Working Paper No. 123
The aim of this research is to investigate the relationship between obesity and wages, using data for nine countries from the European Community Household Panel (ECHP) over the period 1998-2001. We improve upon the existing literature by adopting an Instrumental Variable Quantile Regression (IVQR) model to characterize the heterogenous impact of obesity at different points of the wage distribution. Our results show that i) the evidence obtained from mean regression and pooled analysis hides a significant amount of heterogeneity as the relationship between obesity and wages differs across countries and wages quantiles and ii) cultural, environmental or institutional settings do not seem to be able to explain differences among countries.
Number of Pages in PDF File: 54
Keywords: quantile treatment effect, obesity, wages, endogeneity
JEL Classification: C12, C21, C23, I10, I18
Date posted: April 17, 2008 ; Last revised: February 25, 2014