Do good looks make people more productive? An impact of looks on earnings has been found in the empirical literature: plain people earn less than average-looking people who earn less than good-looking. However, an important question remains unanswered: is the impact of beauty due to pure discrimination or productivity? We provide evidence against the hypothesis of Becker-type discrimination stemming from tastes and in favor of productivity-related discrimination
Fascinatingly, the beauty premium is greater in written exams than oral ones. This suggests the pay-off to good looks (or a lack of ugliness) comes from higher ability rather than discrimination.
