Business Success and Businesses' Beauty Capital

31 Pages Posted: 13 Jul 2000 Last revised: 6 Oct 2010

See all articles by Ciska M. Bosman

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)

Jeff Biddle

Michigan State University

Daniel S. Hamermesh

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: July 1997

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

Bosman, Ciska M. and Pfann, Gerard Antonie and Biddle, Jeff E. and Hamermesh, Daniel S., Business Success and Businesses' Beauty Capital (July 1997). NBER Working Paper No. w6083. Available at SSRN: https://ssrn.com/abstract=226489

Ciska M. Bosman

Maastricht University - Department of Economics

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Gerard Antonie Pfann (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-43-388 3832 (Phone)
+31-43-388 4856 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Jeff E. Biddle

Michigan State University ( email )

East Lansing, MI 48824
United States

Daniel S. Hamermesh

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States
512-475-8526 (Phone)
512-471-3510 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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