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Business success and businesses' beauty capital

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Listed:
  • Pfann, Gerard A.
  • Biddle, Jeff E.
  • Hamermesh, Daniel S.
  • Bosman, Ciska M.

Abstract

We examine whether a difference in pay for beauty is supported by different productivity of people according to looks. Using a sample of advertising firms, we find that those firms with better-looking executives have higher revenues and faster growth than do otherwise identical firms whose executives are not so good-looking. The impact on revenue far exceeds the likely effect of beauty on the executives' wages. This suggests that their beauty creates firm-specific investments, in the form of improved relationships within work groups, the returns to which are shared by the firm and the executive.
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Suggested Citation

  • Pfann, Gerard A. & Biddle, Jeff E. & Hamermesh, Daniel S. & Bosman, Ciska M., 2000. "Business success and businesses' beauty capital," Economics Letters, Elsevier, vol. 67(2), pages 201-207, May.
    • Handle: RePEc:eee:ecolet:v:67:y:2000:i:2:p:201-207
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    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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