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IZA Discussion Paper No. 18113
September 2025
The Heterosis Effect in Human Capital and Wealth Accumulation

In genetics, heterosis describes how crossbreeding produces offspring with greater fitness than their parents. We propose a socioeconomic heterosis hypothesis: does genetic diversity at the individual level benefit economic success? Using UK Biobank data (N=488,152), we find that people with higher genome-wide heterozygosity perform better in modern societies. Greater heterozygosity is positively linked to education, income, leadership, height, and ownership of a home and car. A one standard deviation increase corresponds to about 0.75% higher income and modest gains in schooling and assets. Results are robust to additional controls and corrections for multiple testing, with no effects on migration, diabetes, or neuroticism. Effects rise steadily across the observed range and are stronger for men, suggesting sexual selection. Because heterozygosity is fixed at conception, our findings reveal an underappreciated endowment shaping human capital, wealth accumulation, and inequality.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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