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Sexual Orientation and Household Savings: Do Homosexual Couples Save More?

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Author Info

  • Negrusa, Brighita

    ()
    (RAND)

  • Oreffice, Sonia

    ()
    (University of Surrey)

Abstract

We analyze how sexual orientation is related to household savings using 2000 US Census data, and find that gay and lesbian couples own significantly more retirement income than heterosexuals, 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 couples, in addition to the precautionary motives driving cohabiting households 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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4961.

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Length: 42 pages
Date of creation: May 2010
Date of revision:
Publication status: published as 'Sexual orientation and household financial decisions: evidence from couples in the United States' in: Review of Economics of the Household, 2011, 9 (4), 445-463
Handle: RePEc:iza:izadps:dp4961

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Keywords: housing; sexual orientation; household savings; retirement;

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References

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  1. Mariacristina De Nardi & Eric French & John Bailey Jones, 2009. "Life expectancy and old age savings," Working Paper Series, Federal Reserve Bank of Chicago WP-08-18, Federal Reserve Bank of Chicago.
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  3. Sonia Oreffice, 2009. "Sexual orientation and household decision making. Same-sex couples' balance of power and labor supply choices," Working Papers. Serie AD 2009-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  4. Dan Black & Gary Gates & Seth Sanders & Lowell Taylor, 1999. "Demographics of the Gay and Lesbian Population in the United States: Evidence from Available Systematic Data Sources," Center for Policy Research Working Papers, Center for Policy Research, Maxwell School, Syracuse University 12, Center for Policy Research, Maxwell School, Syracuse University.
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  19. Lisa Jepsen & Christopher Jepsen, 2002. "An empirical analysis of the matching patterns of same-sex and opposite-sex couples," Demography, Springer, vol. 39(3), pages 435-453, August.
  20. Marieka Klawitter, 2008. "The effects of sexual orientation and marital status on how couples hold their money," Review of Economics of the Household, Springer, vol. 6(4), pages 423-446, December.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Save if you're glad to be gay
    by Kevin Denny in Geary Behaviour Centre on 2010-06-22 09:55:00
  2. Homosexuals and savings
    by Economic Logician in Economic Logic on 2010-08-19 14:20:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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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. 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).
  3. 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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  1. Economic Logic blog

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