Working Paper:

Genes, Cognitive Skills, and Preferences

D Graeber, T Maneein, C Schroeder

We examine the relationship between cognitive genetic endowments, measured via a validated polygenic index, and economic preferences. Using representative panel data linking genetic information to stated and revealed preferences, we find that higher cognitive PGI scores are associated with greater risk aversion, increased prosociality, and higher likelihood of holding financial assets, but show no consistent relationship with patience. These associations are robust to controls for family background and population stratification. Evidence suggests that genetic endowments and parental resources act as substitutes in preference formation. Our findings highlight genetic contributions to preference heterogeneity and intergenerational economic inequality. 

Distributions and Drivers of Lifetime Earnings

C Schroeder, M Beckmannshagen, Y Tchokni

We link administrative pension records with rich household survey data to study the distribution and drivers of lifetime labor earnings in Germany for birth cohorts from 1935 onward. Unlike previous studies, our data capture the entire workforce, including the self-employed, civil servants, and workers with interrupted careers, revealing that conventional sample restrictions overstate earnings and understate inequality. We document large gender gaps, rising male inequality, and declining female inequality across cohorts. We examine the association between lifetime earnings and a comprehensive set of factors spanning childhood conditions, education, and family formation, uncovering strongly gender-differentiated patterns that accumulate dynamically over the life course yet remain stable across cohorts.