The Beauty Premuim

"Are you going to school to study or for a fashion show?"

Beyond the mascara swirl, the gloss of pink balm, and the delicate flush of blush lies the inevitable question every little girl must hear at least once. At that fragile age of metamorphosis, society teaches—sometimes subtly, sometimes bluntly—that she may be perceived as either beautiful or intelligent, rarely both.

Beauty has long been trivialized as vanity, dismissed as having no real utility. Women are often found de-glamorizing themselves to be taken seriously. Beauty and intelligence are cast as opposites, worlds apart, never allowed to coexist.

This contrast fascinates me. As a model and behavioral economist, I’ve discovered that the best way to spend three uninterrupted hours in hair and makeup is with my choice of poison— currently Thinking, Fast and Slow—highlighting, pondering, and catching up on behavioral economics readings, all while marveling that makeup has not canceled out my ability to understand Kahneman.

Beauty, to me, has never been the enemy of intelligence. In fact, beauty is a form of intelligence, signaling far more than superficiality. It is a kaleidoscope of self-discipline, financial capital, social intelligence, cognitive bandwidth, time management, and countless hidden costs. If economics is the study of value, beauty must be among its oldest currencies.

Beauty, Our Oldest Economic System

Historically, women have weaponized beauty for survival and influence. With little agency, excluded from property rights, political voice, and financial independence, beauty became one of the few negotiable assets available. “Beauty is power—and with enough power, one could achieve anything,” notes psychologist Dr. Rome. From marriage markets to politics to social hierarchies, appearance dictated rank and status.

Yet despite beauty’s obvious economic effects, it has been largely excluded from “serious” economic thought—likely because economics has long been patriarchal, theorized by brilliant men blind to women’s domains of power. For centuries, a parallel system of influence operated in plain sight, invisible to their eyes.

Catherine Hakim’s theory of erotic capital addresses this directly, identifying beauty, charm, sexuality, social grace, and vitality as a fourth form of capital alongside Bourdieu’s economic, cultural, and social. Erotic capital explains why attractiveness generates measurable advantages in labor and marriage markets, yet patriarchal ideologies have deliberately shamed women for using it.

Today, the beauty premium is everywhere in practice and nowhere in theory. It shapes wages, politics, marriage outcomes, and daily interactions, while continuing to be coded as trivial because it historically belonged to women.

The Modern Economic Power of Beauty

Self:

Beauty is often ritual, identity, and self-actualization. Victorian diaries described beauty routines as “happiness anchors.” Today, skincare, fashion, fitness, wellness routines, cosmetic treatments, nail art, and haircare serve as therapeutic rituals of control. They represent micro-systems of order within larger structures of uncertainty—moments where women reclaim agency over their bodies, time, and presentation. Repeated grooming reinforces self-esteem, discipline, and ambition, enhancing self-concept. Beauty, like prayer or meditation, may not have measurable utility—but it is a profound source of meaning.

Career:

The beauty premium is quantifiable. Attractive workers earn, on average, 10–15% more. Three mechanisms explain this:

Confidence: Attractive individuals are more self-assured, which elevates wages.

Halo Effect: Employers associate attractiveness with competence.

Social Skills: Attractiveness fosters superior social skills via feedback loops, boosting market value.

Social:

Beauty signals bandwidth, agency, and expression. A woman investing in herself communicates: I have surplus energy, time, and taste. Society notices. The “princess treatment”—open doors, polite smiles, and according to a 2025 London School of Economics study, a reported 15% increase in perceived agency—reinforces this investment, strengthening interpersonal relationships.

Love:

After 9/11, Estée Lauder reported a surge in lipstick sales—a phenomenon called the Lipstick Effect. In crises, consumers gravitate toward small luxuries that enhance beauty. Research suggests this is not only psychological comfort but also a subconscious strategy: beauty boosts perceived value in the marriage market. Economic downturns often correlate with women investing more in appearance while seeking financially secure partners. Beauty thus increases bargaining power in relationships and the likelihood of higher-status matches.

Capital:

Sociologically, beauty functions as capital. Money buys options, education buys credibility, beauty buys margins for error, social favor, and opens doors—literally and metaphorically.

Beauty on Our Own Terms

This reflection is not a prescription for performative beauty. Nor does it suggest beauty should displace intellect or ambition. Rather, it emphasizes recognition: beauty has always been, and remains, a powerful form of capital. To dismiss it is to dismiss women’s collective lived reality.

Yet beauty carries a paradox. When someone meets a beautiful woman, admiration and suspicion arise simultaneously. People are captivated by her looks but wonder if they eclipse her mind.

Which effect “wins” depends on first impressions, credentials, and clarity. Attractive individuals who establish their competence early gain the halo effect without suffering the attractiveness penalty.

The moral: If you are beautiful, lead with your brilliance first and fast. Let the world catch up later.