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What Can Life Satisfaction Data Tell Us About Discrimination Against Sexual Minorities? A Structural Equation Model for Australia and the United Kingdom

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  • Powdthavee, Nattavudh

    (Nanyang Technological University, Singapore)

  • Wooden, Mark

    (Melbourne Institute of Applied Economic and Social Research)

Abstract

Very little is known about how the differential treatment of sexual minorities could influence subjective reports of overall well-being. This paper seeks to fill this gap. Data from two large surveys that provide nationally representative samples for two different countries – Australia (the HILDA Survey) and the UK (the UK Household Longitudinal Study) – are used to estimate a simultaneous equations model of life satisfaction. The model allows for self-reported sexual identity to influence a measure of life satisfaction both directly and indirectly through seven different channels: (i) income; (ii) employment; (iii) health (iv) partner relationships; (v) children; (vi) friendship networks; and (vii) education. Lesbian, gay and bisexual persons are found to be significantly less satisfied with their lives than otherwise comparable heterosexual persons. In both countries this is the result of a combination of direct and indirect effects.

Suggested Citation

  • Powdthavee, Nattavudh & Wooden, Mark, 2014. "What Can Life Satisfaction Data Tell Us About Discrimination Against Sexual Minorities? A Structural Equation Model for Australia and the United Kingdom," IZA Discussion Papers 8127, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8127
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    Cited by:

    1. Crispin H. V. Cooper, 2020. "Quantitative Models of Well-Being to Inform Policy: Problems and Opportunities," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
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    3. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.

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    More about this item

    Keywords

    HILDA Survey; life satisfaction; discrimination; sexual minorities; sexual orientation; UKHLS;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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