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Business Success and Businesses' Beauty Capital

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  • Ciska M. Bosman
  • Gerard Pfann
  • Jeff E. Biddle
  • Daniel S. Hamermesh

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.

Suggested Citation

  • Ciska M. Bosman & Gerard Pfann & Jeff E. Biddle & Daniel S. Hamermesh, 1997. "Business Success and Businesses' Beauty Capital," NBER Working Papers 6083, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6083
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    JEL classification:

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

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