We use large-scale register data on 450,000 Swedish males who underwent mandatory military enlistment at age 18, and a subsample of 150,000 siblings, to examine why tall people earn more. We show the importance of both cognitive and noncognitive skills, as well as family background and muscular strength for the height-earnings relationship. In addition, we show that a substantial height premium remains after these factors have been accounted for, which originates from very short people having low earnings. This is mostly explained by the sorting of short people into low-paid occupations, which may indicate discrimination by stature.