Working Paper: NBER ID: w18123
Authors: Daniel S. Hamermesh
Abstract: Using several microeconomic data sets from the United States and the Netherlands, and the examples of height and beauty, this study examines whether: 1) Absolute or relative differences in a characteristic are what affect labor-market and other outcomes; and 2) The effects of a characteristic change when all agents acquire more of it--become taller or better-looking. Confronted with a choice among individuals, decision-makers respond more to absolute than to relative differences among them. Also, an increase in the mean of a characteristic's distribution does not alter market responses to differences in it.
Keywords: Discrimination; Labor Market; Beauty; Height
JEL Codes: J71; J78
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| absolute differences in characteristics (C21) | decision-makers' responsiveness (D70) |
| absolute beauty ratings (C52) | likelihood of expulsion from a game show (C78) |
| increasing height of Dutch males (J11) | earnings-height relationship (J31) |
| female beauty (J16) | probability of charitable contributions (D64) |