Genes may explain about a third of earnings differences, according to a study of 44,500 U.S. twin pairs
A study of 44,500 American twin pairs suggests genetic factors account for nearly one-third of the variation in earnings. But same-sex twins’ tendency to work at the same companies may inflate estimates of how heritable career success is.
A recent study of 44,500 U.S. twin pairs suggests that genetic factors may account for approximately one-third of the variation in earnings among steadily employed adults in their late 20s and 30s. While social scientists use heritability to estimate the proportion of differences in traits that can be attributed to inherited genetic variation rather than environmental conditions, researchers have traditionally relied on classical twin designs.
This method compares identical twins, who share 100% of their genes, with fraternal twins who share around 50% of their genes. However, this approach may overstate the genetic component of career success because same-sex twins are more likely to work at the same company. The study, published in PNAS, addresses this issue by analyzing administrative records covering the full population of young adult twins in the United States.
Researchers linked household records from the 2000 U.S. Census to quarterly wage records from state unemployment insurance tax filings, covering formal wage and salary jobs. The sample included 87,000 twin pairs and 2,168,000 non-twin sibling pairs. After filtering for stable full-time work, the analysis encompassed 44,500 twin pairs and 1,007,000 non-twin sibling pairs.
By comparing identical and fraternal twins, researchers aimed to separate genetic inheritance from family upbringing, ultimately finding that genetic factors may play a significant role in shaping adult earnings.
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