Penalties and Some Counterfactuals to Beauty Premium: Evidence From a Job Search Simulation Experiment

Article Details

Luisito C. Abueg, lcabueg@up.edu.ph, De La Salle University Manila, Philippines
Patricia Gene O. Hubilla, , University of the Philippines Los Baños, Laguna, Philippines
Francheska M. Lozano, , University of the Philippines Los Baños, Laguna, Philippines
Patricia Isabel L. Valdivieso, , University of the Philippines Los Baños, Laguna, Philippines
Melissa Marri S. Valencia, , University of the Philippines Los Baños, Laguna, Philippines

Journal: DLSU Business and Economics Review
Volume 30 Issue 1 (Published: 2020-07-01)

Abstract

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 an employer’s personal bias and stereotypes. Lastly, people concur on the appeal of certain beauty features—more consistently for women.

Keywords: labor economics, employer decisions, experiments on labor economics, hiring decisions, gender economics, gender bias, beauty premium, occupational crowding

DOI: https://www.dlsu.edu.ph/wp-content/uploads/2020/08/2Abueg.pdf
  References:

Agthe, M., M. Spörrle, M., & and, J. K. Maner, J. K. (2010). “Don`t hate me because I`m beautiful: aAnti-attractiveness bias in organizational evaluation and decision making”. Journal of Experimental Social Psychology, 46(6),: 1151–-1154.

Andreoni, J., & R. Petrie, R. (2008). “Beauty, gender and stereotypes: eEvidence from laboratory experiments.” Journal of Economic Psychology, 29(1),: 73–-93.

Becker, G. S. (1957). The economics of discrimination. Illinois, USA: University of Chicago Press.

Cavico, F., S. Muffler, S.,and B. & Mujtaba, B. (2012). “Appearance discrimination, ‘lookism’ and ‘lookphobia’ in the workplace.” Journal of Applied Business Research, 28(5),: 791–xxx.

Cheng, K. J. A., N. J. Z. Cruz, N. J. Z.,C. L. Lopena, C. L.,A. A. Sarmiento, A. A., M. M. R. Sauler, M.M. R., &and L. C. Abueg, L.C. (2017). “A note on open tournament theory”. Proceedings of the DLSU Research Congress. Publisher.

Corbett, J. (2009). “What is Beauty?: Royal Victoria Hospital, Wednesday 1st October 2008.” Ulster Medical Journal 78(2): 84–89.

Ehrenberg, R. G., and R. S.& Smith, R. S. (2012). Modern labor economics: tTheory and public policy, (11th ed.). Boston, Massachusetts: Pearson Education.

Eswaran, M. (2014). Why gender matters in economics. New Jersey: Princeton University Press.

Gu, T., and Y. & Ji, Y. (2019). “Beauty premium in China’s labor market: is discrimination the reason?” China Economic Review, 57(C).

Hamermesh, D., and J.& Biddle, J. (1994). “Beauty and the labor market”. American Economic Review, 84(5),: 1174–-1194.

Harper, B. (2000). “Beauty, stature and the labor market: A British cohort study”. Oxford Bulletin of Economics & Statistics, 62(62),: 771–800.

Hatfield, E., and S.& Sprecher, S. (1986). Mirror, mirror: The importance of looks in everyday life. Albany, New York: SUNY Press.

Hosoda, M., E. F. Romero, E. F., & and G. Coats, G. (2003). “The effects of physical attractiveness on job related outcomes: a meta-analysis of experimental studies.” Personnel Psychology, 56(2),: 431–462.

Hunter, M. (2007). “The persistent problem of colorism: sSkin tone, status, and inequality.” Sociology Compass, 1(1),: 237–-254.

Johnston, D. W. (2010). “Physical appearance and wages: dDo blondes have more fun?” Economics Letters, 108(1),: 10–12.

Lee, M., M. Pitesa, M., M. M. Pillutla, M. M., &and S. Thau, S. (2015). “Gender differences in response to competition with same-gender coworkers: a relational perspective”. Journal of Personality and Social Psychology, 110(6),: 869–-886.

Lee, M., M. Pitesa, M., M. M. Pillutla, M. M., &and S. Thau, S. (2018). “Perceived entitlement causes discrimination against attractive job candidates in the domain of relatively less desirable jobs”. Journal of Personality and Social Psychology, 114(3),: 422–442.

Liu, X., and E.& Sierminska, E. (2014). “Evaluating the effect of beauty on labor market outcomes: A review of the literature”. (IZA Discussion Paper no. 8526 (October). Publisher.

Mobius, M., and T.& Rosenblat, T. (2006). “Why beauty matters.” American Economic Review, 96(1),: 222–-235.

Moore, C., S. Lee, S., K. Kim, K., & and D. Cable, D. (2017). “The advantage of being oneself: tThe role of self-verification in successful job search.” Journal of Applied Psychology, 102(11),: 1493–-1513.

Price, M. K. (2008). “Fund-raising success and a solicitor`s beauty capital: do blondes raise more funds?” Economics Letters, 100(3),: 351–354.

Rhode, D. (2009). “The injustice of appearance.” Stanford Law Review, 61(x),: 1033–-1101.

Rooth, D. (2009). “Obesity, attractiveness, and differential treatment in hiring a field experiment.” Journal of Human Resources, 44(3),: 710–-735.

Smith, H. M. J., A. K. Dunn, TA.K.,. Baguley, T., & and P. C. Stacey, P. C. (2016). “Concordant cues in faces and voices: testing the backup signal hypothesis` `. Evolutionary Psychology, 14(1). https://doi.org/10.1177/1474704916630317

Solnick, S., and M.& Schweitzer, M. (1999). “The influence of physical attractiveness and gender on ultimatum game decisions.” Organizational Behavior and Human Decision Processes, 79(3),: 199–215.

Tatarkiewicz, W. (2012). A history of six ideas: An essay in aesthetics. (Vol. 5). Berlin, Germany: Springer Science & Business Media.

Tietje, L., and S.& Cresap, S. (2005). “Is lookism unjust?: The ethics of aesthetics and public policy implications.” Journal of Libertarian Studies, 19(2),: 31–-50.

Walcutt, B., L. Patterson, L., and S.& Seo, S. (2013). “Linkages of socio-economic, self-perceptive and cultural factors to the beauty premium and grade point average.” Journal of Business Studies, 3(1),: 51–-68.

Wooldridge, J. (2010). Econometric analysis of cross section and panel data. (2nd ed.) Massachusetts, USA: The MIT Press.

  Cited by:
     None...