Family Disadvantage, Gender and the Returns to Genetic Human Capital

36 Pages Posted: 7 Jul 2020 Last revised: 23 Nov 2024

See all articles by Victor Ronda

Victor Ronda

Johns Hopkins University Department of Economics

Esben Agerbo

Aarhus University

Preben Mortensen

Aarhus University

Anders D. Børglum

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH)

David M. Hougaard

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH)

Ole Mors

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH)

Merete Nordentoft

Mental Health Centre Copenhagen - Danish Research Institute for Suicide Prevention; Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH)

Thomas Werge

University of Copenhagen - Institute for Biological Psychiatry

Michael Rosholm

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics; Amternes og Kommunernes Forskningsinstitut (AKF)

Abstract

This paper relies on a large-scale sample of genotyped individuals linked with detailed register data in Denmark to investigate the context-dependence of genetic influences on human capital formation. We show that the returns to genetic endowments, measured by a polygenic score for educational attainment, are significantly attenuated by childhood disadvantage. We replicate the findings in a within-family analysis, where we exploit exogenous genetic variation across siblings to control for unobserved family influences. We also explore gender differences in the context-dependence of genetic influences and find the attenuation effect of childhood disadvantage on educational attainment to be significantly stronger for males than for females. We show our findings extend to a representative sample of the Danish population. Our results highlight an important mechanism driving the persistence of disadvantage across generations. We show that children who experience childhood disadvantage are not able to fully realize their educational potential, even in the context of the generous Danish welfare-state.

Keywords: gene-environment interactions, genomics, education, family disadvantage

JEL Classification: I1

Suggested Citation

Ronda, Victor and Agerbo, Esben and Mortensen, Preben and Børglum, Anders D. and Hougaard, David M. and Mors, Ole and Nordentoft, Merete and Werge, Thomas and Rosholm, Michael, Family Disadvantage, Gender and the Returns to Genetic Human Capital. IZA Discussion Paper No. 13441, Available at SSRN: https://ssrn.com/abstract=3643205

Victor Ronda (Contact Author)

Johns Hopkins University Department of Economics ( email )

3400 Charles Stree
Baltimore, MA 21218-2685
United States

Esben Agerbo

Aarhus University ( email )

Preben Mortensen

Aarhus University ( email )

Nordre Ringgade 1
DK-8000 Aarhus C, 8000
Denmark

Anders D. Børglum

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH) ( email )

David M. Hougaard

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH) ( email )

Ole Mors

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH) ( email )

Aarhus
Denmark

Merete Nordentoft

Mental Health Centre Copenhagen - Danish Research Institute for Suicide Prevention ( email )

Copenhagen
Denmark

Lundbeck Foundation Initiative for Integrative Psychiatric Research (iPSYCH) ( email )

Thomas Werge

University of Copenhagen - Institute for Biological Psychiatry ( email )

Michael Rosholm

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Allé 4
Aarhus V
Denmark
+45 89 42 15 59 (Phone)
+45 86 13 63 34 (Fax)

IZA Institute of Labor Economics

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

Amternes og Kommunernes Forskningsinstitut (AKF)

Nyropsgade 37
Copenhagen, DK-1602
Denmark

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