| Topic: |
Genetic Endowments and Lifetime Earnings: Understanding the Mechanisms |
| Time&Date: |
10:30 am -11:30 pm, June 10, 2025 (Tuesday) |
| Venue |
Room 904, Teaching Complex D Building |
| Speaker: |
Weilong Zhang
University of Cambridge
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| Abstract: |
This paper investigates how genetic endowments influence lifetime earnings using a dynamic life cycle model and longitudinal data from a cohort tracked from birth to retirement. We examine genetic impacts on skill formation as well as choices of parental investments, educational attainment, and occupation. A one standard deviation increase in the polygenic score for educational attainment raises lifetime earnings by 18.9%. Although part of this effect is due to genetic endowments impacting skill formation, the majority is due to genetic endowments impacting choices. Extending our analysis to include polygenic scores for additional traits reveals other channels thorough which they operate. Furthermore, our estimates show that genetic endowments and investments are substitutes in the production of earnings during early childhood but are complements later in life, highlighting the crucial importance of early-life interventions to effectively mitigate genetic inequalities. |
| Biography: |
Dr Weilong Zhang is an Associate Professor in the Faculty of Economics at the University of Cambridge and a Fellow of Selwyn College. His work explores how genetic endowments and personality traits influence people’s choices in labour-market participation and household decision-making, with a focus on model-based approach. Dr Zhang earned his PhD in Economics from the University of Pennsylvania, after completing an MA in Economics and a BS in Mathematics at Renmin University of China. His research has appeared in the leading journals such as Journal of Political Economy, Review of Financial Studies, Journal of Labor Economics, Quantitative Economics, European Economic Review, and the Journal of Human Resources. |
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