ABSTRACT
This chapter continues the exploration of genetic influences using the genetic variation of adoptees, their parents (biological and adoptive), and adoptive siblings. Some estimates indicate that the contribution of nurture and unique experiences combined are twice as influential as nature. This means that biology can explain about one-third of the variation of economic outcomes between people. There is also an essential role for post-birth effects (i.e., nurture and unique experiences). Gender is important because the economic outcomes of mothers have more influence on the outcomes of daughters, while the outcomes of fathers have more influence on sons. Thus, there is a role model aspect of nurture. The chapter then discusses how the popularity of mapping one’s genome might lead to more direct tests of genetics and investment decisions. It has been more difficult than expected to find genetic markers that drive economic decisions and outcomes because of the magnitude of the human genome. However, social scientists have developed methods to test the DNA differences between people through a person’s polygenic score. An important finding is that the score associated with educational attainment also shows what influences economic outcomes and investment characteristics like risk aversion, stock market participation, and probabilistic thinking.
