Genetic Endowments, Educational Outcomes, and the Moderating Influence of School Quality

Genetic endowments are fixed at conception and matter for the educational attainment of individuals. Do better schools mitigate or magnify the outcomes of this genetic lottery? We analyze the interplay of genetic endowments and school quality for educational attainment in the United States. Our results suggest that higher-quality schools are substitutes for genetic endowments: a 1 SD increase in school quality reduces the positive effect of a 1 SD increase in the relevant polygenic index (PGI) by 19%. This substitutability is underpinnedby relative gains in health, language ability, patience, and risk aversion of low-PGI students.