Wages, Intelligence and Physical Appearance

Abstract

The paper explores the relation among wages, intelligence and Physical appearance. We find the later to influence the former, but once IQ is accounted for, the effect vanishes, showing that physical appearance may be a signal that actually indicates the cognitive ability possesed by the workers. Small and medium firms, lacking technologies to properly estimate the ability of their applicants, may rely on physical appearance as a substitue. We finnaly disscuse some explanations of the effect found.