January 20, 2026
Note: The revised version has been published at Ethiopia Insight
The livestream of IShowSpeed in Addis Ababa drew a level of global attention Ethiopia has rarely received in recent years. Until that moment, I had never heard of him. A closer look at his reach made clear why the broadcast mattered.
He is one of the most influential figures in the contemporary digital ecosystem, and his presence in Ethiopia placed the country, briefly but unmistakably, at the center of a global online conversation. It was a reminder of how quickly digital visibility now travels, and how profoundly it can reshape perception.
I remember my first day working at a European research institute in Germany. During a coffee break, a colleague pursuing a PhD in legal studies approached me and said, “My parents still have a receipt from donating to famine relief in Ethiopia in 1977. Do you still have famine?”
Imagine hearing this on your very first day at work as the only Black researcher in the office while trying to navigate a new work environment. Over time, similar comments became routine whenever I traveled to Europe or North America. Some people asked whether Ethiopia even universities had, despite knowing that I was there on a full scholarship for a master’s degree.
For many African students in Western countries, such questions are normalized. Some people do not even know where Ethiopia is located. This is not just my story; I believe many Ethiopians share similar experiences. Western media has long portrayed Africa almost exclusively through war, famine, and drought. These narratives are deeply misleading because they show only one side of reality.
Social media matters. Africa deserves more than a single story. For decades, the world has known Ethiopia largely through images of famine and poverty. Today, social media offers a powerful alternative allowing Ethiopians to tell their own stories, on their own terms. The world now sees how beautiful Addis Ababa is. That is something!
The Economic Divided of the IShowSpeed Event
The economic value of the IShowSpeed visit is undeniable, mainly for two reasons.
Ethiopia’s tourism sector was severely affected by COVID-19 and later by the Tigray war. This event sent a strong signal to the world that Ethiopia, at least Addis Ababa, is relatively peaceful and safe for international visitors.
One may argue otherwise, but the reality is simple: mass gatherings of that scale do not occur in the absence of basic security and if it is not peaceful. While it is too early to measure long-term tourism impacts, the resources spent on hosting this event were likely far lower than what Ethiopia would spend on global advertising campaigns.
For comparison, Rwanda reportedly paid over $100 million to Arsenal for an eight-year sleeve sponsorship to increase global visibility and boost tourism. The comparison is not perfect, but it is insightful when thinking about cost-effective image building.
The event also demonstrated Ethiopia’s capacity for digital connectivity, particularly in Addis Ababa. Reliable digital infrastructure is a prerequisite for attracting foreign direct investment, especially in banking, fintech, and service sectors. In this sense, the livestream functioned as real-time proof of digital readiness.
Despite these benefits, there are reasons for concern. My concerns go beyond this single event. It relates to the growing influence of social media, especially TikTok, Instagram, and YouTube on young people.
In Ethiopia, students drop out of school for many well-documented reasons: poverty, distance to schools, conflict, and weak infrastructure. These are largely supply-side constraints. In this context, 4.5 million children of primary-school age and 2.7 million of secondary school students have dropped out of school in 2020.
However, evidence from international countries suggests that excessive social media use is associated with depression and poor mental health. Similar patterns may emerge in Ethiopia. Depression can lead to disengagement from education, increasing dropout risks.
Moreover, the visibility of “digital success” may encourage some youth to abandon schooling altogether in pursuit of TikTok or YouTube fame, despite the extremely low probability of sustained success.
When education is devalued in favor of short-term digital attention, human capital accumulation suffers. A simple example is reading. A generation that loses interest in books and deep learning faces long-term consequences for productivity, innovation, and long-term development.
In Ethiopia, only primary education is compulsory and free. According to World Bank estimates, the adult literacy rate is approximately 60 percent. This figure is substantially lower when disaggregated by region and gender, reflecting persistent inequalities in educational access and attainment. Expanding compulsory education to include secondary school should therefore be a central policy priority. Without such an expansion, increased digital participation risks widening existing inequalities rather than reducing them. I must acknowledge that while the expansion of mandatory schools is open for discussion, its intervention and implementation should be supported with empirical evidence.
Literacy rates in Ethiopia remain below the African average. Digital literacy must be integrated into school curricula alongside basic literacy. Young people need to learn not just how to use platforms, but how to critically engage with them.
Financial literacy is foundational in the digital era. Many young people enter online platforms primarily in pursuit of economic gain, yet lack basic knowledge of income management, savings, taxation, and long-term financial sustainability. Without these skills, digital income is often fragile and short-lived.
Financial literacy, particularly discipline and long-term planning can help ensure income sustainability. Young people who spend most of their time on platforms such as TikTok or YouTube are less likely to invest in their human capital, which is essential for generating stable long-term income. Strong financial management skills, including budgeting, saving, and strategic planning, can therefore mitigate these risks and support more sustainable economic outcomes.
Digital access is neither free nor equality distributed. Women are less likely to own smartphones or access the internet, and rural communities lag far behind urban centers.
Closing this gap has proven economic and social benefits. Economically empowered women are more likely to raise healthier children, delay early marriage, and experience lower rates of domestic violence. Failure to address digital inequality will widen future inequality.
Language as Human Capital Investment
In economics, language is a form of human capital investment made based on expected returns. Language acquisition should not be viewed only as a means of communication, but as an investment with expected economic returns.
Research shows that multilingualism is associated with innovation, analytical thinking, and better academic outcomes. For this discussion, my interest is investment in the English language. In the social media era, English is a highly valued skill. Ignoring this reality is costly.
Language proficiency requirements vary by profession and sector. A lawyer, for example, needs advanced proficiency to analyze legal texts, while a salesperson requires functional skills to persuade consumers. The same applies to TikTokers, whose success in the digital economy depends on their ability to reach and engage global audiences. Investing in English therefore expands visibility and income opportunities, making it a critical skill in today’s digital marketplace.
New Reality
To sum, Ethiopian youth are increasingly prioritizing economic opportunity over political negotiations that offer little or no direct economic return. For decades, political discourse has revolved around ethnic or nationalist redistribution of power, often detached from tangible economic outcomes for a rapidly growing youth population.
As Yanis Varoufakis argues, we are moving toward a new form of capitalism technofeudalism where value is generated not through wage labor, but through algorithmic extraction. Unlike capitalism, users are not paid; instead, their data is extracted, analyzed, and monetized.
Similarly, Shoshana warns that these algorithms extract personal information not only for profit, but also to shape behavior posing and risks the struggle for democracy itself. Whether we like it or not, we are training the algorithms without compensation. Varoufakis calls us cloud serfs.
Resisting artificial intelligence and the influence of social media is neither realistic nor desirable. The real question is how to capture economic gains while minimizing social harm.
Times have changed. We must acknowledge this shift and respond to it with policies that harness the digital economy while safeguarding education, equity, and long-term development.
The Economics of Beauty Premium in Ethiopia
Fenet Jima Bedaso (PhD)
May 18, 2025
My good friend Weyni Tesfai recently shared her personal experience on her YouTube channel, discussing how the dark legacy of slavery has left a lasting fingerprint on perceptions of skin tone and beauty. She spoke about how her children are perceived in Ethiopia and mentioned some of the unconscious questions she receives from people in Addis Ababa, such as why her children have curly hair.
After watching her video, I reflected on how definitions of beauty can lead to stereotyping individuals based on their physical appearance. Beyond social interactions, beauty can also have economic implications, particularly in the labor market. Physical appearance may influence hiring decisions, wages, and promotion opportunities, thereby contributing to inequality.
In economics, discrimination occurs when individuals with similar education, experience, and job-relevant characteristics receive different treatment based on attributes unrelated to productivity (Becker, 1957). One concept that helps explain this phenomenon is the beauty premium.
The beauty premium refers to the empirical observation that individuals who are considered physically attractive tend to have better employment prospects and earn higher wages than those considered less attractive. Numerous studies conducted in Western countries demonstrate that attractive workers receive higher wages and are more likely to be hired, even in occupations where appearance should not influence productivity (Mobius & Rosenblat, 2006; Doorley & Sierminska, 2015).
Some economists argue that attractive individuals may possess higher levels of confidence, which improves their interactions with employers and coworkers, thereby enhancing their labor market outcomes. However, the causal direction of this relationship is debated. It is equally plausible that preferential treatment toward attractive individuals contributes to increased confidence and better social outcomes, rather than confidence being an inherent trait associated with physical attractiveness (Mobius & Rosenblat, 2006).
What Is Beauty or Physical Attractiveness?
Although there is no universal definition of beauty, cultural consensus within a society often shapes shared perceptions of attractiveness. Economic research commonly measures physical attractiveness using facial photographs that are rated by evaluators on a numerical scale. For instance, participants may be asked to rate individuals on a scale from 0 to 10, where higher scores represent greater perceived attractiveness (Mobius & Rosenblat, 2006).
However, such measures are inherently subjective and reflect broader social biases. For example, in societies where European beauty standards dominate media representation, individuals with lighter skin tones or straighter hair may receive higher attractiveness ratings. In the United States, research has documented workplace discrimination based on hair texture and hairstyles associated with Black identity (Trusty et al., 2023).
These biases demonstrate that perceptions of beauty are socially constructed and often influenced by historical power structures, cultural norms, and media representation. Importantly, there is little evidence that physical attractiveness is systematically related to job performance.
Economic Theories Explaining the Beauty Premium
From an economic perspective, two major theories of discrimination help explain why physical attractiveness may influence labor market outcomes.
1. Taste-Based Discrimination
Gary Becker’s theory of taste-based discrimination suggests that employers, coworkers, or customers may have personal preferences that influence hiring decisions (Becker, 1957). According to this framework, employers may prefer to work with individuals they find more attractive and therefore discriminate against less attractive candidates.
As a result, less attractive individuals may be less likely to receive interview invitations and may face lower wage offers even when their productivity is identical to that of their more attractive counterparts. This form of discrimination contributes to wage inequality unrelated to human capital.
Empirical evidence supports the existence of such biases in hiring decisions. Studies have shown that individuals perceived as more attractive are more likely to receive positive responses from employers and may experience wage advantages throughout their careers (Doorley & Sierminska, 2015).
2. Statistical Discrimination
Another explanation is statistical discrimination, which occurs when employers rely on group stereotypes rather than evaluating individual productivity. Employers may use perceived correlations between certain characteristics and productivity when making hiring decisions.
In the context of beauty, employers might assume that attractive individuals possess stronger communication skills, greater confidence, or better customer-facing abilities. Even when these assumptions lack empirical support, they can influence hiring decisions.
For example, an employer may believe that attractive employees interact more effectively with clients and therefore favor them for customer-facing roles. In this case, discrimination occurs not necessarily because of personal dislike but because of stereotypes about the relationship between appearance and competence.
Beauty Standards and Discrimination in Ethiopia
In Ethiopia, beauty standards are shaped by a combination of historical, cultural, and global influences. Factors such as skin tone, facial features, and hair texture often influence perceptions of attractiveness.
Like many countries, Ethiopia’s diverse ethnic and cultural composition makes it difficult to establish a single universal definition of beauty. Standards may vary between rural and urban areas, as well as across ethnic groups and cultural contexts.
Nevertheless, there is often a socially recognized preference for lighter skin tones and certain facial features. These perceptions can also influence economic and social outcomes. For example, in some communities, brides perceived as physically attractive may command higher dowry payments, reflecting the economic value associated with beauty in the marriage market.
Media representation also plays a significant role in shaping beauty norms. Although Ethiopian media has recently begun portraying a wider range of skin tones, dominant beauty imagery still often favors long, straightened hair. Natural hairstyles and darker skin tones remain underrepresented.
Favoring lighter skin has a long history in Africa, with roots often linked to European colonialism. Colonial racial hierarchies associated lighter skin with power, wealth, and social status, shaping enduring beauty standards (Hunter, 2007; Glenn, 2008). Today, these norms continue to influence perceptions of beauty across Africa. One visible example is the growing use of skin-lightening products among young women, reflecting social pressures that associate lighter skin with attractiveness and upward mobility. These standards remain influential even in countries such as Ethiopia, which were never formally colonized, largely through Western media, global cultural exchange, and the legacy of Eurocentric aesthetics (Glenn, 2008; Hunter, 2007).
Conclusion
The economic advantages associated with beauty premium are well documented in academic research from developed economies. However, due to limited data and research infrastructure, the topic has received far less attention in developing countries, including Ethiopia.
Understanding the role of beauty in labor market outcomes is important because it highlights a subtle yet powerful form of discrimination. The beauty premium demonstrates how individuals with identical levels of education, skills, and productivity may experience unequal opportunities simply because of how they look.
References
Becker, G. S. (1957). The economics of discrimination. University of Chicago Press.
Doorley, K., & Sierminska, E. (2015). Myth or fact? The beauty premium across the wage distribution in Germany. Economics Letters, 129, 29–34.
Mobius, M. M., & Rosenblat, T. S. (2006). Why beauty matters. American Economic Review, 96(1), 222–235.
Glenn, E. N. (2008). Yearning for lightness: Transnational circuits in the marketing and consumption of skin lighteners. Gender & Society, 22(3), 281–302.
Hunter, M. L. (2007). The persistent problem of colorism: Skin tone, status, and inequality. Sociology Compass, 1(1), 237–254.
Trusty, J., Ward, D. A., Good-Perry Ward, M., & He, M. (2023). Hair bias in the workplace: A critical human resource development perspective. Advances in Developing Human Resources, 25(1), 5–26.