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Does It Get Better? Recent Estimates of Sexual Orientation and Earnings in the United States

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  • Christopher S. Carpenter
  • Samuel T. Eppink

Abstract

Using 2013–2015 National Health Interview Survey data, we reproduce a well‐documented finding that self‐identified lesbians earn significantly more than comparable heterosexual women. These data also show—for the first time in the literature—that self‐identified gay men also earn significantly more than comparable heterosexual men, a difference on the order of 10% of annual earnings. We discuss several possible explanations for the new finding of a gay male earnings premium and suggest that reduced discrimination and changing patterns of household specialization are unlikely to be the primary mechanisms.

Suggested Citation

  • Christopher S. Carpenter & Samuel T. Eppink, 2017. "Does It Get Better? Recent Estimates of Sexual Orientation and Earnings in the United States," Southern Economic Journal, John Wiley & Sons, vol. 84(2), pages 426-441, October.
    • Handle: RePEc:wly:soecon:v:84:y:2017:i:2:p:426-441
    DOI: 10.1002/soej.12233
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    1. Christopher S. Carpenter, 2008. "Sexual orientation, work, and income in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1239-1261, November.
    2. Heather Antecol & Michael D. Steinberger, 2013. "Labor Supply Differences Between Married Heterosexual Women And Partnered Lesbians: A Semi-Parametric Decomposition Approach," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 783-805, January.
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    5. Dan A. Black & Hoda R. Makar & Seth G. Sanders & Lowell J. Taylor, 2003. "The Earnings Effects of Sexual Orientation," ILR Review, Cornell University, ILR School, vol. 56(3), pages 449-469, April.
    6. Clarke, Geoffrey & Sevak, Purvi, 2013. "The disappearing gay income penalty," Economics Letters, Elsevier, vol. 121(3), pages 542-545.
    7. Edinaldo Tebaldi & Bruce Elmslie, 2006. "Sexual orientation and labour supply," Applied Economics, Taylor & Francis Journals, vol. 38(5), pages 549-562.
    8. Joseph J. Sabia & Mark Wooden & Thanh Tam Nguyen, 2017. "Sexual Identity, Same‐Sex Relationships, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 903-931, April.
    9. Christopher Carpenter & Gary Gates, 2008. "Gay and lesbian partnership: Evidence from California," Demography, Springer;Population Association of America (PAA), vol. 45(3), pages 573-590, August.
    10. Christopher S. Carpenter, 2008. "Sexual orientation, work, and income in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1239-1261, November.
    11. Marieka M. Klawitter & Victor Flatt, 1998. "The effects of state and local antidiscrimination policies on earnings for gays and lesbians," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(4), pages 658-686.
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    Cited by:

    1. Michael E. Martell & Peyton Nash, 2020. "For Love and Money? Earnings and Marriage Among Same-Sex Couples," Journal of Labor Research, Springer, vol. 41(3), pages 260-294, September.
    2. Mishel Emma, 2019. "Intersections between Sexual Identity, Sexual Attraction, and Sexual Behavior among a Nationally Representative Sample of American Men and Women," Journal of Official Statistics, Sciendo, vol. 35(4), pages 859-884, December.
    3. Aksoy, Billur & Chadd, Ian & Koh, Boon Han, 2023. "Sexual identity, gender, and anticipated discrimination in prosocial behavior," European Economic Review, Elsevier, vol. 154(C).
    4. Billur Aksoy & Ian Chadd & Boon Han Koh, 2022. "(Anticipated) Discrimination against Sexual Minorities in Prosocial Domains," University of East Anglia School of Economics Working Paper Series 2021-08, School of Economics, University of East Anglia, Norwich, UK..
    5. Drydakis, Nick, 2021. "The Economics of Being LGBT. A Review: 2015-2020," IZA Discussion Papers 14845, Institute of Labor Economics (IZA).
    6. Carpenter, Christopher S. & Sansone, Dario, 2021. "Cigarette taxes and smoking among sexual minority adults," Journal of Health Economics, Elsevier, vol. 79(C).
    7. Maryam Dilmaghani, 2019. "Sexual orientation and the ‘cohabitation gap’ in life satisfaction in Canada," Review of Economics of the Household, Springer, vol. 17(4), pages 1163-1189, December.
    8. Nick Drydakis, 2022. "Sexual orientation and earnings: a meta-analysis 2012–2020," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 409-440, April.
    9. Aksoy, Cevat Giray & Carpenter, Christopher S. & Frank, Jeff & Huffman, Matt L., 2019. "Gay glass ceilings: Sexual orientation and workplace authority in the UK," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 167-180.
    10. Jepsen, Christopher & Jepsen, Lisa, 2020. "Convergence Over Time or Not? U.S. Wages by Sexual Orientation, 2001-2018," IZA Discussion Papers 13495, Institute of Labor Economics (IZA).
    11. Eva Elton & Gilbert Gonzales, 2022. "Health Insurance Coverage and Access to Care by Sexual Orientation and Marital/Cohabitation Status: New Evidence from the 2015–2018 National Health Interview Survey," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 479-493, April.
    12. Brahma, Sanjukta & Gavriilidis, Konstantinos & Kallinterakis, Vasileios & Verousis, Thanos & Zhang, Mengyu, 2023. "LGBTQ and finance," International Review of Financial Analysis, Elsevier, vol. 86(C).
    13. 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.
    14. Ian Burn, 2020. "The Relationship between Prejudice and Wage Penalties for Gay Men in the United States," ILR Review, Cornell University, ILR School, vol. 73(3), pages 650-675, May.
    15. Lennon, Conor, 2022. "Employer-sponsored health insurance and labor market outcomes for men in same-sex couples: Evidence from the advent of pre-exposure prophylaxis," Economics & Human Biology, Elsevier, vol. 47(C).
    16. Martell, Michael E., 2021. "Labor market differentials estimated with researcher-inferred and self-identified sexual orientation," Economics Letters, Elsevier, vol. 205(C).
    17. Christopher S. Carpenter & Samuel T. Eppink & Gilbert Gonzales, 2020. "Transgender Status, Gender Identity, and Socioeconomic Outcomes in the United States," ILR Review, Cornell University, ILR School, vol. 73(3), pages 573-599, May.
    18. Jepsen, Christopher & Jepsen, Lisa, 2022. "Convergence over time or not? U.S. wages by sexual orientation, 2000–2019," Labour Economics, Elsevier, vol. 74(C).
    19. John Levendis & Aaron Lowen, 2023. "What Same-Sex Adoption Laws Can Tell Us About the Gender Wage Gap in the United States," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 473-489, June.
    20. Drydakis, Nick & Zimmermann, Klaus F., 2020. "Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights," GLO Discussion Paper Series 627, Global Labor Organization (GLO).
    21. Ian Burn & Michael E. Martell, 2022. "Gender typicality and sexual minority labour market differentials," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 784-814, December.
    22. Coral del Río & Olga Alonso-Villar, 2019. "Occupational Achievements of Same-Sex Couples in the U.S. by Gender and Race," Working Papers 1901, Universidade de Vigo, Departamento de Economía Aplicada.
    23. Coral del Río & Olga Alonso‐Villar, 2019. "Occupational Achievements of Same‐Sex Couples in the United States by Gender and Race," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 704-731, October.

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