Knowledge that Transforms

When Does Beauty Pay? A Large-Scale Image Based Appearance Analysis on Career Transitions In this study, we collect up to 15 years of career histories for over 40,000 MBA graduates from top 100 MBA programs in the United States. We find that attractive MBA graduates earn at least $2,508 more in yearly salary compared with plain-looking (unattractive) MBA graduates. The attractiveness premium is even larger for top 10 percentile attractive graduates, for those with arts undergraduate majors, and those in managerial roles, nontechnical jobs, and non-IT industries. Policymakers should note that the attractiveness bias is not much smaller in size than gender bias. It is pervasive over time (in individuals in their 30s and 40s and not just 20s) and across industries. It may need a similar focus as gender or racial bias in labor markets. Companies can craft their HR trainings and procedures guided by this finding. A study of this scale is only possible using cutting-edge machine learning and generative AI methods (instead of human subjects) for large-scale data processing.

Practice and Policy-Based Abstract Externalities stemming from digital platforms have had a profound impact on the daily lives of people across the globe. In this work, we examine one such externality that contributes to urban quality of life, the noise stemming from home-sharing platforms, which has been subject to aggressive scrutiny by policymakers and the popular press but has received limited rigorous empirical attention. Against a backdrop of significant investment by municipalities to curb extant levels of urban noise, our findings suggest that these platforms are instead correlated with a decrease in noise complaints in New York City (notably when occupancy rates are lower or the residence is located near tourist attractions). These findings suggest that investments in abating the noise stemming from such short-term rentals are less necessary than indicated by anecdotal evidence and are better directed at other forms of urban noise sources, chiefly because such rental units are frequently unoccupied and therefore remain quieter than residential units. However, these findings also underscore the extent to which home-sharing networks may be further straining the already stressed housing market in large metropolitan areas like New York City.

To leverage the complementary strengths of humans and artificial intelligence (AI) in online service encounters, firms have begun to use hybrid service agents: combinations of AI agents (e.g., chatbots) and human agents (e.g., service employees) behind a single interface. However, it is unclear whether firms should be transparent about behind-the-scenes employees working in tandem with an AI-based chatbot to serve customers. Against this backdrop, we investigated the impact of human involvement disclosure on customer interactions with hybrid service agents. Our findings suggest that disclosing human involvement before or during an interaction with the hybrid service agent leads customers to adopt a more human-oriented communication style. This effect is driven by impression management concerns that are activated when customers become aware of humans working in tandem with the chatbot. The more human-oriented communication style ultimately increases employee workload because fewer customer requests can be handled automatically by the chatbot and must be delegated to a human. These findings provide novel insights into how and why disclosing human involvement affects customer communication behavior, reveal its negative consequences for employees working in tandem with a chatbot, and highlight the potential costs and benefits of providing transparency in customer–hybrid service agent interactions.

Our research examines the impact of online food delivery platforms on female employment in South Korea, highlighting the often-overlooked positive externalities that digital platforms generate on the labor market and economics. We find that these platforms lead to an immediate and lasting increase in the female employment rate, with a notable increase in the female employment rate by 6.5%. The economic benefits derived from this rise in female employment account for 0.27% to the country’s GDP, or 17 times the revenue of the online food delivery platform. Our analysis shows that such digital platforms offer a pathway for women to break free from traditional household roles, thus granting them more time and the opportunity to decide whether to join the labor market or stay at home. The freedom to be able to join the labor force promotes gender equality and fosters economic engagement. Policymakers need to recognize such indirect effects of technology-driven business models because they shape labor markets and drive economic outcomes. This research has vital implications for practice and policy, offering fresh perspectives on fostering female labor force participation and boosting economic growth. Empowering individual households and granting women greater agency can have profound effects, supplementing organizational measures. The study highlights the underestimated economic and societal value created by innovative technology platforms, emphasizing the need for policymakers to consider these spillover effects when assessing and regulating such platforms. Leveraging digital platforms can lead countries toward a more inclusive and prosperous future, dismantling barriers and promoting gender equality.