119 research outputs found
Cycles of Wage Discrimination
Using CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic males and women, Hispanics and African-Americans. Women's and Hispanics' relative earnings are harmed by negative shocks, while the earnings disadvantage of African-Americans may drop with negative shocks. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.women, minorities, beauty, search models
Beauty, Productivity and Discrimination: Lawyers' Looks and Lucre
We propose several models in which an ascriptive characteristic generates earnings differentials and is sorted across sectors. The general approach shows how to distinguish the ultimate sources of labor-market returns to such characteristics; the specific example uses longitudinal data on a large sample of attorneys who graduated from one law school. Beauty is measured by ratings of their matriculation photographs. 1) Better-looking attorneys who graduated in the 1970s earned more after 5 years of practice than their worse- looking classmates, other things equal, an effect that grew even larger by the fifteenth year of practice. There is no impact of beauty on earnings among 1980s graduates. 2) Attorneys in the private sector are better-looking than those in the public sector, with the differences rising as workers sort across sector based on their beauty. 3) Male attorneys' probability of attaining an early partnership rises with beauty. The results support a theory of dynamic sorting and the role of customer behavior. We cannot determine whether this is because clients discriminate or because better-looking lawyers are able to obtain greater pecuniary gains for their clients.
Beauty and the Labor Market
We develop a theory of sorting across occupations based on looks and derive its implications for testing for the source of earnings differentials related to looks. These differentials are examined using the 1977 Quality of Employment, the 1971 Quality of American Life, and the 1981 Canadian Quality of Life surveys, all of which contain interviewers' ratings of the respondents' physical appearance. Holding constant demographic and labor-market characteristics, plain people earn less than people of average looks, who earn less than the good-looking. The penalty for plainness is 5 to 10 percent, slightly larger than the premium for beauty. The effects are slightly larger for men than women; but unattractive women are less likely than others to participate in the labor force and are more likely to be married to men with unexpectedly low human capital. Better-looking people sort into occupations where beauty is likely to be more productive; but the impact of individuals' looks on their earnings is mostly independent of occupation.
Business Success and Businesses' Beauty Capital
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.
Cycles of Wage Discrimination
Using CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic males and women, Hispanics and African-Americans. Women’s and Hispanics’ relative earnings are harmed by negative shocks, while the earnings disadvantage of African-Americans may drop with negative shocks. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.
- …