Business Success and Businesses' Beauty Capital
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.
|Date of creation:||Jul 1997|
|Date of revision:|
|Publication status:||published as "Business success and businesses' beauty capital" Economics Letters, Vol 93, 3 (December 2006) Pages 201-207 Gerard A. Pfann, Jeff E. Biddle, Daniel S. Hamermesh and Ciska M. Bosman|
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