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The height premium in Indonesia.

Kitae Sohn1

  • 1Kookmin University, Economics, 77 Jeongneung-ro, Seongbuk-gu, Seoul 136-702, Republic of Korea.

Economics and Human Biology
|February 1, 2014
PubMed
Summary

Physical stature significantly impacts earnings in Indonesia. A 10 cm height increase correlates with higher wages for both men and women, particularly in self-employment and the private sector, suggesting potential discrimination.

Area of Science:

  • Economics
  • Sociology
  • Human Capital Theory

Background:

  • The relationship between physical characteristics and economic outcomes is a persistent area of study.
  • Previous research indicates a 'height premium' in various labor markets, but evidence from developing economies like Indonesia is less explored.
  • Understanding these correlations is crucial for addressing labor market inequalities.

Purpose of the Study:

  • To quantify the association between physical stature (height) and earnings in Indonesia.
  • To investigate variations in this association across different employment sectors (self-employed, private, public) and genders.
  • To explore potential evidence of discrimination in wage determination based on height.

Main Methods:

  • Analysis of the Indonesian Family Life Survey (IFLS) data from 2007.
Keywords:
HeightHeight premiumIndonesiaWages

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  • Econometric estimation of earnings functions, controlling for a comprehensive set of productivity-related variables.
  • Sector-specific and gender-disaggregated regression analyses to identify differential height premiums.

    • Main Results:

    • A 10 cm increase in height is associated with a 7.5% earnings increase for men and 13.0% for women.
    • Significant height premiums were found for self-employed men (12.3%) and women (18.0%), and for women in the private sector (11.1%).
    • No statistically significant height premium was observed in the public sector for either gender.

    Conclusions:

    • Height is a significant determinant of earnings in the Indonesian labor market, even after controlling for productivity factors.
    • The findings suggest that customer preferences for taller workers may contribute to wage discrimination, particularly in customer-facing roles or sectors.
    • Policy implications may involve addressing potential biases in hiring and compensation to ensure equitable labor market outcomes.