Daniel Hamermesh, a professor of economics at UT-Austin, has done extensive work on the economics of beauty [1]. His most famous finding is that better looking people make more money than their less attractive counterparts. This effect holds true even after controlling for factors like gender, intelligence, and industry [2]. Furthermore, it isn't only observed in jobs like entertainment or customer service where it makes sense for beauty to be an advantage. Studies have shown that good looks lead to better outcomes in professions ranging from lawyer to NFL quarterback [3][4].

Hamermesh's research has found that there is both a beauty premium (i.e. above average looks earn more than average looks) and an ugliness penalty (i.e. below average looks earn less than average looks). On average, the best looking Americans can expect lifetime earnings $230,000 greater than the least attractive. And while It might seem intuitive that looks carry more importance for women, evidence suggests the opposite might be true. Attractive women make 12% more than unattractive women while attractive men get a 17% boost over unattractive men [5].

Labor markets aren't the only place where beauty plays a role. Studies have found that attractive people have wealthier spouses, get more and better loans, and receive less harsh prison sentences [6]. In fact, new research suggests that the better looking not only make more money but are also happier and have higher life satisfaction [7].

For your amusement, here is a picture of Dr. Hamermesh, the face of beauty economics.

[1] I had the good fortune to take Principles of Microeconomics with Dr. Hamermesh. He was an outstanding teacher who made theories clear and applications relevant. If you're a current or future UT student, I highly recommend his class.

[2] Beauty And The Labour Market

[3] Beauty, Productivity, and Discrimination: Lawyers' Looks and Lucre

[4] Good looking quarterbacks make an estimated $300,000 more than unattractive QBs after adjusting for productivity. Do Pretty-Boy Quarterbacks Make More Money?

[5] The Economics of Beauty - Are Attractive People More Successful?

[6] The line of beauty

[7] This effect is relatively weak. A one standard deviation increase in attractiveness predicts an additional 0.08 standard deviations of both happiness and satisfaction. Roughly half of this increase is accounted for by the economic gains associated with beauty. Beauty Is The Promise of Happiness?

[8] Here is Dr. Hamermesh in a hilarious Daily Show segment. Daily Show: Ugly People Prejudice.