Penalties and some counterfactuals to beauty premium: Evidence from a job search simulation experiment

Abstract

© 2020 by De La Salle University. By utilizing Heckman’s two-stage selection model, this paper attempts to establish correlates between an individual’s physical attractiveness and the employer’s hiring decisions and wage allocations in an experimental labor market. Undergraduate students from De La Salle University Manila represented the sample for applicants. The findings show that, first, beauty premium is lower for men—more physically attractive male candidates have lower chances of getting hired, and subsequently acquire lower wages than more physically attractive women. Second, beauty premium does not differ between the sales and finance occupations. Third, the relationship between beauty and hiring probability comes from the employer’s personal bias, whereas the link between beauty and wages originates from and employer’s personal bias and stereotypes. Lastly, people concur on the appeal of certain beauty features—more consistently for women.

Source or Periodical Title

DLSU Business and Economics Review

ISSN

1167111

Page

15-29

Document Type

Article

Subject

Beauty premium, Employer decisions, Experiments on labor economics, Gender bias, Gender economics, Hiring decisions, Labor economics, Occupational crowding

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