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Sexual orientation and household savings: do homosexual couples save more?

Author

Listed:
  • Brighita Negrusa

    (RAND Corporation)

  • Sonia Oreffice

    (Universidad de Alicante)

Abstract

We analyze how sexual orientation is related to household savings using 2000 US Census data, and find that gay and lesbian couples own more retirement income than do heterosexual ones, while cohabiting heterosexuals save more than their married counterparts. In a household savings model, we interpret this homosexual-specific differential as due to the extremely low fertility of same-sex households, in addition to the precautionary motives driving cohabiting couples to save more than married ones. Evidence from homeowners’ ratio of mortgage payments to house value exhibits the same pattern of savings differentials by sexual orientation and cohabiting status.

Suggested Citation

  • Brighita Negrusa & Sonia Oreffice, 2010. "Sexual orientation and household savings: do homosexual couples save more?," Working Papers. Serie AD 2010-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2010-21
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Homosexuals and savings
      by Economic Logician in Economic Logic on 2010-08-19 19:20:00
    2. Save if you're glad to be gay
      by Kevin Denny in Geary Behaviour Centre on 2010-06-22 14:55:00

    Citations

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    Cited by:

    1. Ortigueira, Salvador & Siassi, Nawid, 2013. "How important is intra-household risk sharing for savings and labor supply?," Journal of Monetary Economics, Elsevier, vol. 60(6), pages 650-666.
    2. Eisend, Martin & Hermann, Erik, 2020. "Sexual orientation and consumption: Why and when do homosexuals and heterosexuals consume differently?," International Journal of Research in Marketing, Elsevier, vol. 37(4), pages 678-696.
    3. Carolina Silva Cassorla, 2010. "The interaction of minimum wage and severance payments in a frictional labor market: theory and estimation," Working Papers. Serie AD 2010-22, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Brighita Negrusa & Sonia Oreffice, 2011. "Sexual orientation and household financial decisions: evidence from couples in the United States," Review of Economics of the Household, Springer, vol. 9(4), pages 445-463, December.

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    More about this item

    Keywords

    sexual orientation; household savings; retirement; housing;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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