This study analyzes the labor market dimension of a worldwide social concern: the growing level of obesity. Using detailed, individual information of Chilean workers, the study finds a strong evidence of a wage penalty for women as body size increases, whereas men seemingly enjoy a wage premium for being overweight. Several hypotheses are tested for explaining this finding and results suggest that the gender wage gap between obese and non-obese workers is not related to observed productivity differences, risk aversion, or health limitations. For women, the wage penalty is mostly explained by occupational crowding and the “beauty premium” in high-skilled occupations. Finally, this study outlines possible avenues that future research should address.

HIGHLIGHTS

• Women are more likely to experience a weight penalty in labor markets than men.
• Heavier women earn less per hour than thinner coworkers in Chile.
• Overweight men experience a wage premium.
• Wage differences between obese and non-obese women cannot be explained by observable endowments.
• The wage penalty is larger in occupations requiring more social interactions.