Abstract
This paper analyzes whether taller workers earn more than their shorter counterparts. Using GSOEP data from 1991 To 2002, earnings functions are estimated for mail and female workers for both West and East German regions. The Hausman-Taylor IV Estimator is applied to account for unobservable heterogeneity including also time-invariant indicators. The results do not imply wage differentials by height for female workers and male East German workers. For the height range up to 195cm, there, however, is a wage premium associated with stature for male workers from West Germany of about 4% for an additional standard deviation increment in height.
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