Business Success and Businesses' Beauty Capital
Ciska M. Bosman
Maastricht University - Department of Economics
Gerard A. Pfann
Maastricht University; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Michigan State University
Daniel S. Hamermesh
University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)
NBER Working Paper No. w6083
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.
Number of Pages in PDF File: 31working papers series
Date posted: July 13, 2000
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