Answer: Starlight is refracted by the earth’s atmosphere, which bends it towards the normal and makes the star appear higher.
Light from a star passes through air layers whose density and refractive index increase towards the earth. At each layer the ray bends towards the normal, so the direction in which it reaches our eye is steeper than the true direction of the star. The star therefore appears higher above the horizon than it actually is — an effect of atmospheric refraction.