Does it pay to be beautiful? Physically attractive people can earn more, particularly in customer facing jobs, and the rewards for men are higher than for women.

The number of employment-related discrimination claims based on employees' physical appearance is increasing. Policies to counter such discrimination are being introduced in a number of countries, but if they do not take into account the channels through which physical appearance is affecting labor market outcomes?such as employer discrimination, customer discrimination, productivity, and occupational sorting?they may fail to achieve their goals. Society should recognize and observe the relevance of a beauty premium. A need for interventions depends on legal considerations and whether such a premium reflects discrimination or productivity.