The Yellow Kid was created and drawn by Richard F. Outcault. Real name Mickey Dugan, he was bald headed and was probably shaven after lice were found.
He sported a large yellow hand-me-down nightshirt, hence the name. As a device, the shirt had what the kid was saying printed on it.
The Yellow Kid made his appearance as a supporting character in Truth Magazine in 1894. Due to his popularity he then became the star of Hogan's Alley (a fictional slum area in New York City). This first appeared in the New York World published by Joseph Pulitzer in 1895.
Soon color was introduced, leading the way to Hogan's Alley and its star the Yellow Kid becoming a full-page Sunday color cartoon.