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Sexual Orientation, Disclosure and Earnings

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Author Info
Plug, Erik () (University of Amsterdam)
Berkhout, Peter () (SEO Amsterdam)

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Abstract

Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3290.

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Date of creation: Jan 2008
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Handle: RePEc:iza:izadps:dp3290

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Related research
Keywords: sexual orientation; disclosure; earnings; discrimination; selection;

Other versions of this item:

Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. John M. Blandford, 2003. "The nexus of sexual orientation and gender in the determination of earnings," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(4), pages 622-642, July. [Downloadable!] (restricted)
  2. Nathan Berg & Donald Lien, 2002. "Measuring The Effect Of Sexual Orientation On Income: Evidence Of Discrimination?," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 394-414, October. [Downloadable!] (restricted)
  3. Christopher S. Carpenter, 2005. "Self-reported sexual orientation and earnings: Evidence from California," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 58(2), pages 258-273, January. [Downloadable!] (restricted)
  4. Erik Plug & Peter Berkhout, 2004. "Effects of sexual preferences on earnings in the Netherlands," Journal of Population Economics, Springer, vol. 17(1), pages 117-131, February. [Downloadable!] (restricted)
    Other versions:
  5. M. V. Lee Badgett, 1995. "The wage effects of sexual orientation discrimination," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(4), pages 726-739, July.
  6. Dan A. Black & Seth G. Sanders & Lowell J. Taylor, 2007. "The Economics of Lesbian and Gay Families," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 53-70, Spring.
  7. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  8. Sylvia A. Allegretto & Michelle M. Arthur, 2001. "An Empirical analysis of homosexual/heterosexual male earnings differentials: Unmarried and unequal?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(3), pages 631-646, April.
  9. G. Reza Arabsheibani & Alan Marin & Jonathan Wadsworth, 2005. "Gay Pay in the UK," Economica, London School of Economics and Political Science, vol. 72(286), pages 333-347, 05. [Downloadable!] (restricted)
    Other versions:
  10. Carpenter, Christopher S., 2007. "Revisiting the income penalty for behaviorally gay men: Evidence from NHANES III," Labour Economics, Elsevier, vol. 14(1), pages 25-34, January. [Downloadable!] (restricted)
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