Four studies examined whether Israeli 5-year-olds (N=88) and adults (N=48) drew inferences about psychological properties based on a character's social category, personality trait, or physical appearance trait. Study 1 revealed that while children drew inferences mostly by social category, adults did it by personality trait. Study 2 showed that the children's pattern was not due to how the categorical information was conveyed. Studies 3 and 4 demonstrated that for kindergarteners, labels, not appearances, are determinant of the inductive potential of social categories. Studies indicated that "Jew" and "Arab" were the most inductively powerful social categories for both children and adults. The results carry implications for the roles of language, appearances, and culture in the conceptualization of "human kinds."