Health Human Capital, Height and Wages in China

Abstract

We estimate the returns to height using data from 12 Chinese cities. We present both ordinary least squares (OLS) and two-stage least squares (TSLS) estimates. In the latter height is instrumented using proxies for health human capital, accumulated in childhood and adolescence, which influence adult height. The TSLS estimates are much higher, reflecting the fact that the OLS estimates are determined by the random genetic factors influencing height, while the TSLS estimates also take into account returns from investment in health human capital during childhood and adolescence. These results imply considerable returns to investment in health human capital.

Acknowledgements

We thank Asad Islam, Dietrich Fausten and two anonymous referees for helpful suggestions on an earlier version of this article. We also thank Sarah Carrington for research assistance.