Obesity and the Labor Market: A Fresh Look at the Weight Penalty

34 Pages Posted: 15 Feb 2014

See all articles by Marco Caliendo

Marco Caliendo

University of Potsdam; Institute for the Study of Labor (IZA)

Markus Gehrsitz

University of Strathclyde; IZA Institute of Labor Economics

Abstract

This paper applies semiparametric regression models to shed light on the relationship between body weight and labor market outcomes in Germany. We find conclusive evidence that these relationships are poorly described by linear or quadratic OLS specifications, which have been the main approaches in previous studies.Women's wages and employment probabilities do not follow a linear relationship and are highest at a body weight far below the clinical threshold of obesity. This indicates that looks, rather than health, is the driving force behind the adverse labor market outcomes to which overweight women are subject. Further support is lent to this notion by the fact that wage penalties for overweight and obese women are only observable in white-collar occupations. On the other hand, bigger appears to be better in the case of men, for whom employment prospects increase with weight, albeit with diminishing returns. However, underweight men in blue-collar jobs earn lower wages because they lack the muscular strength required in such occupations.

Keywords: obesity, wages, employment, semiparametric regression, gender differences

JEL Classification: J31, J71, C14

Suggested Citation

Caliendo, Marco and Gehrsitz, Markus, Obesity and the Labor Market: A Fresh Look at the Weight Penalty. IZA Discussion Paper No. 7947. Available at SSRN: https://ssrn.com/abstract=2396442

Marco Caliendo (Contact Author)

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)

HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Markus Gehrsitz

University of Strathclyde ( email )

Department of Economics
199 Cathedral St
Glasgow, G4 0QU
United Kingdom

HOME PAGE: http://www.markusgehrsitz.com

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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