NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Business Success and Businesses' Beauty Capital

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

NBER Working Paper No. 6083
Issued in July 1997
NBER Program(s):   LS

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.

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Document Object Identifier (DOI): 10.3386/w6083

Published: "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 citation courtesy of

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