Abstract:  We investigate whether adolescents’ relative height within their peer group has lasting effects on labor market outcomes. Using longitudinal data from the National Longitudinal Study of Adolescent to Adult Health (Add Health), we exploit within-school, across-grade variation in the distribution of classmates’ height to separate relative standing from absolute stature and family background. We document that adolescent height is a more salient predictor of adult wages than adult height. More importantly, relative height within the grade cohort matters: an individual who was about one inch shorter than the tallest classmate earns roughly 1.5% less, that is a 5-inch gap results into a 7.5% wage penalty. Interpersonal comparisons operate through both psychological and social channels. Taller adolescents display lower emotional instability and occupy more central positions in peer networks, and these advantages translate into higher earnings later in life.