Sexual orientation, labour supply and occupational sorting in Canada

Using five consecutive cycles of the Canadian General Social Survey covering 2010–14, the present article examines the differences in the labour supply and occupational sorting of partnered men and women by sexual orientation. Conditional on being gainfully employed, lesbians are found to have a higher labour supply than heterosexual women, even controlling for factors such as the number of children and the characteristics of the spouse. The reverse is true for gay men. The analysis of occupational structure shows that lesbians are more likely to sort into male‐dominated occupations, while the reverse is true for gay men. The findings of this article have implications for the correct interpretation of the sexual orientation related earnings gaps.