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Beauty Premium And Marriage Premium In Search Equilibrium: Theory And Empirical Test

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  • Roberto Bonilla
  • Francis Kiraly
  • John Wildman

Abstract

We propose a theoretical explanation for the so‐called beauty premium. Our approach relies entirely on search frictions and the fact that physical appearance plays an important role in attracting a marriage partner. We analyze the interaction between frictional labor and marriage markets, making use of what we label constrained job search. The optimal strategy entails different reservation wages for different men, and we establish the existence of a search equilibrium characterized by a beauty premium and/or marriage premium. Predicted profiles of premia allow for potential falsification tests and point to relevant empirical evidence in support of our theory.

Suggested Citation

  • Roberto Bonilla & Francis Kiraly & John Wildman, 2019. "Beauty Premium And Marriage Premium In Search Equilibrium: Theory And Empirical Test," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 851-877, May.
    • Handle: RePEc:wly:iecrev:v:60:y:2019:i:2:p:851-877
    DOI: 10.1111/iere.12370
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    Cited by:

    1. Roberto Bonilla & Alberto Trejos, 2021. "Marriage and employment participation with wage bargaining in search equilibrium," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 517-533, September.
    2. Roberto Bonilla & Francis Kiraly & John Wildman, 2022. "Marriage premium with productivity heterogeneity," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 317-328, January.
    3. Andrea Fazio, 2021. "Beautiful inequality: Are beautiful people more willing to redistribute?," Working Papers in Public Economics 194, University of Rome La Sapienza, Department of Economics and Law.
    4. Roberto Bonilla & Alberto Trejos, 2015. "Marriage, Employment Participation and Home Production in Search Equilibrium," Monetaria, Centro de Estudios Monetarios Latinoamericanos, CEMLA, vol. 0(1), pages 1-23, january-j.
    5. Roberto Bonilla & Francis Kiraly, 2019. "Male Investment in Schooling with Frictional Labour and Marriage Markets," CESifo Working Paper Series 7901, CESifo.
    6. Bonilla, Roberto & Malo, Miguel Á. & Pinto, Fernando, 2022. "Marriage wage premium with contract type heterogeneity," Labour Economics, Elsevier, vol. 78(C).
    7. Roberto Bonilla & Francis Z. Kiraly & John Wildman, 2017. "Marriage Premium and Class," CESifo Working Paper Series 6550, CESifo.
    8. Roberto Bonilla & Francis Kiraly, 2020. "Constrained Fixed Sample Search," Economics Bulletin, AccessEcon, vol. 40(2), pages 1645-1650.
    9. Fazio, Andrea, 2022. "Attractiveness and preferences for redistribution," Economics & Human Biology, Elsevier, vol. 46(C).
    10. Roberto Bonilla & Adrian Masters, 2023. "Endogenous gender-based discrimination in a model of simultaneous frictional labor and marriage markets," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(1), pages 107-119, April.

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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