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Beauty premium in China's labor market: Is discrimination the main reason?

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  • Gu, Tianzhu
  • Ji, Yueqing

Abstract

Based on data from the China Labor-force Dynamics Survey (CLDS), this paper analyzes the effects of the height as well as other appearance characteristics of workers on their wages. Regression results show that after controlling for social network, human capital, and other endowment characteristics, the effects of the appearance characteristics become smaller and statistically insignificant. The decomposition results of the wage-appearance differentials show that higher wages for good-looking workers are mainly attributable to differences in individual characteristics. Among them, the lower wages for shorter males and higher wages for thinner females are mainly attributable to the unexplained parts of discrimination. Males suffer more from “shortness penalty”, whereas females may earn from “pretty face”. Further results showed that height may influence blue-collar workers’ wages through the effect on physical strength. Empirical evidence also demonstrates that there are strong correlations between appearance and working ability (social network and human capital). Thus, our results confirmed the little beauty premium in the Chinese labor market and the relatively wages differentials are not mainly due to discrimination from consumers or employers, instead attributable mainly to differences of individual endowment characteristics.

Suggested Citation

  • Gu, Tianzhu & Ji, Yueqing, 2019. "Beauty premium in China's labor market: Is discrimination the main reason?," China Economic Review, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:chieco:v:57:y:2019:i:c:s1043951x19300963
    DOI: 10.1016/j.chieco.2019.101335
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    Citations

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    Cited by:

    1. Ping Li & Xiaozhou Chen & Qi Yao, 2021. "Body Mass and Income: Gender and Occupational Differences," IJERPH, MDPI, vol. 18(18), pages 1-20, September.
    2. Liao, Hongwei & Chi, Yedi & Zhang, Jiarui, 2020. "Impact of international development aid on FDI along the Belt and Road," China Economic Review, Elsevier, vol. 61(C).
    3. Zhang, Junsen & Fei, Shulan & Wen, Yanbing, 2023. "How Does the Beauty of Wives Affect Post-marriage Family Outcomes? Helen's Face in Chinese Households," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 122-137.
    4. Zhang, Junsen & Fei, Shulan & Wen, Yanbing, 2023. "How Does the Beauty of Wives Affect Post-Marriage Family Outcomes? Helen's Face in Chinese Households," IZA Discussion Papers 16157, Institute of Labor Economics (IZA).
    5. David Ong, 2022. "The college admissions contribution to the labor market beauty premium," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 491-512, July.
    6. Peng, Langchuan & Wang, Xi & Ying, Shanshan, 2020. "The heterogeneity of beauty premium in China: Evidence from CFPS," Economic Modelling, Elsevier, vol. 90(C), pages 386-396.

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