Beauty Premium: Ethiopian Context 

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.

         I watched her YouTube channel and reflected on how our definitions of beauty can lead to stereotyping individuals based on physical appearance. Beyond social interactions, beauty can have economic implications, serving as one reason for discrimination against less conventionally attractive people in employment or earnings.

Discrimination occurs when one group of workers, with the same education, experience, and other job-relevant characteristics, receives inferior treatment compared to another group.

I aim to reflect on an economic concept called the "beauty premium." This refers to the phenomenon where beautiful or physically attractive workers have a better chance of employment and earn higher wages than those considered less physically attractive. Extensive studies in Western countries show that physically attractive people earn higher wages even in occupations where appearance does not seem relevant to job performance.

Mainstream economists argue that attractive individuals tend to have higher confidence levels, which enhances their interactions with employers and, in turn, increases their earnings. However, there is no clear causal evidence that physical attractiveness directly builds confidence. In fact, preferential treatment itself can help foster greater confidence in the workplace and society.

What Is "Beauty" or "Physical Attractiveness"?

While there is no universal conceptual definition of beauty, there is usually a cultural consensus at any given time about what is considered attractive. Within a society, individuals often share similar perceptions of beauty. Most economic research measures beauty using facial photographs of individuals. In experiments, researchers often distribute frontal facial photographs to employers or students, who rate the attractiveness on a scale (e.g., 0 to 5 or 0 to 10, with the highest number indicating more beauty).

To put this into perspective: if a white CEO employer is presented with facial photographs of Black women with natural or textured hairstyles alongside white women with straightened hairstyles, the latter group would, on average, receive a higher beauty rating. In the U.S., race-based hair discrimination, particularly against Black women, is well-documented in the workplace. Thus, measuring beauty or attractiveness not only introduces subjective biases but also reveals that beauty has no relationship with job performance.

Economic Theories Explaining the Beauty

 The beauty premium describes a phenomenon where workers experience better labor market outcomes solely because of their physical appearance. From an economic standpoint, two types of discrimination theories explain why less attractive individuals may have lower employment opportunities and earnings:

1. Taste-Based Discrimination

In 1957, economist Gary Becker introduced the theory of taste-based discrimination in the labor market. He argued that some employers have a distaste for working with certain groups, whether based on race, gender, or, in this case, physical attractiveness, and therefore prefer to hire more attractive individuals. As a result, less attractive individuals are less likely to receive callbacks for job interviews. Even when hired, they may have to accept lower wages despite having the same productivity level as their attractive counterparts. This dynamic contributes to wage inequality based on appearance. Substantial empirical evidence supports the existence of employer discrimination against less attractive individuals.

2. Statistical Discrimination

Statistical discrimination occurs when employers use group averages or stereotypes to make judgments about an individual’s abilities, rather than evaluating the person based on their own qualifications or performance. Measuring and identifying statistical discrimination on employment outcomes is not an easy task. Statistical discrimination is not only hard to detect but also its dangerous form of discrimination. Because it can persist even if employers are not intentionally biased.

 Employers rely on perceived correlations between certain group characteristics and productivity. In the context of beauty, this means that an employer might assume that more attractive people are more confident, competent, or better at interacting with customers, even if there is no evidence that an attractive individual has that personality.

For example, if employers believe that attractive individuals tend to have better social skills, they may favor hiring them for customer-facing roles, even if a less attractive candidate has better experience or qualifications. This happens not because the employer personally dislikes the less attractive individual, but because they believe, based on broader social stereotypes, that beauty is linked to better job performance.

In the context of Ethiopia, where beauty standards are heavily influenced by factors such as skin tone, facial features, and hair texture, statistical discrimination could mean that lighter-skinned individuals or those with more "Europeanized" features might be assumed to be more competent or trustworthy, even without evidence. This can affect hiring decisions, promotions, and even social treatment.

Like many other countries in the world, preferential treatment based on ethnicity, language, dialect, religion, and physical attractiveness is not uncommon in Ethiopia. Ethiopia’s rich history and diverse ethnic composition create a unique landscape for beauty standards. In a culturally and ethnically diverse society, it is difficult to have a standard definition of beauty. Additionally, in rural areas, where media exposure is lower, the standards of beauty often differ from those in urban place of residence.

Despite the diversity, there is a generally socially accepted notion of beauty: for instance, lighter-skinned women with straight noses are often considered more beautiful. In some cases, the dowry price is higher for brides considered beautiful, reflecting beauty’s economic value in the marriage market.

In the past decade, the media has attempted to portray beauty with a wider range of skin tones, leveraging its power to influence societal standards. However, when it comes to representing women’s beauty, the media often promotes long and straightened hair, while natural, curly hair remains underrepresented. Darker skin with short, natural hair should be represented in the media to promote the representation of diverse beauty

It should be noted that favoring lighter-skinned individuals has a long history in Africa, its roots being found in European colonialism. European colonizers fostered an implicit belief that lighter skin was the standard of beauty and was often associated with power, wealth, and social status. The European beauty standard continues to shape societal perceptions towards beauty in Africa and beyond. One prominent example can be the growing number of young women in Africa and Asia continuing to bleach their skin. One may ask why a lighter skin tone is preferred in Ethiopia. Europeans never colonized Ethiopia, but they have deeply influenced the standard of beauty or physical attractiveness, like other countries in Africa.

Nevertheless, the beauty premium is not solely about lighter skin; it also encompasses overall physical attractiveness. Physical attractiveness is closely linked to a person’s socioeconomic background. Factors such as clothing and general appearance, which influence how individuals present themselves to potential employers, are shaped by both culture and economic status, even within the same racial group. For example, a recent university graduate may struggle to meet an employer’s standards of physical attractiveness simply because they cannot afford the professional attire expected to make a strong impression.

Overall, the economic advantages that physically attractive individuals are well-documented in academic literature from economically advanced countries. However, due to limited resources and a lack of data, this issue has been largely overlooked in both academic and public discourse in the Global South, including in Ethiopia. Furthermore, the beauty premium reflects a form of discrimination that persists in the workplace and significantly contributes to employment and wage inequalities among workers with equivalent levels of human capital.

References

Becker, G. S. (2010). 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.

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.

Written: May 18, 2025

Ethiopia Goes Viral With IShowSpeed, a Moment for Reflection

by Fenet Jima Bedaso (PhD)

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.

Tourism and National Image

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.

Digital Infrastructure and Investment Signaling

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.

School Dropout Risks

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.

Knowledge at Risk

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.

Human Capital

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. 

 Digital Literacy

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 

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.

The Digital Divide: Gender and Geography

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.