How does physical attractiveness affect earnings? Studies of the U.S. labor market show that beautiful people earn more than people of average looks, and unattractive people earn less. The beauty premium is 5 percent for the 33 percent of workers who are considered beautiful or handsome, and the beauty premium is larger for men than for women. The penalty for bad looks is about 8 percent for the 10 percent of workers who are considered plain or unattractive. The beauty premium and the plain penalty have been observed in other countries and within specific occupations such as lawyers.
Why do beautiful people earn more income? According to biologists, beauty is a marker for underlying characteristics such as health and intelligence, and beautiful people start with a slight edge in the labor market. Beautiful people get more opportunities to learn through experience, and they also acquire better professional contacts. Because of these wider opportunities, a small difference in innate characteristics can be amplified into a large difference in earnings. Another factor in the beauty premium is that some workers and consumers simply like dealing with attractive people, so there is a higher demand for beautiful workers, resulting in higher wages.