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The Relationship Between Earnings and Sexual Orientation: First Evidence from China

Author

Listed:
  • Deng, Zichen

    (University of Amsterdam)

  • Luo, Weixiang

    (Fudan University, China)

  • Plug, Erik

    (University of Amsterdam)

  • Yu, Jia

    (Peking University)

Abstract

We document, for the very first time, the relationship between earnings and sexual orientation in China. Using data from the 2020 Chinese Private Life Survey, we find that gay men earn significantly less than comparable heterosexual men, with the largest penalties for rural-hukou holders and among men reporting exclusive same-sex attraction. Lesbian women tend to earn more than heterosexual women, but the differences are small and mostly insignificant. The estimates for bisexual men and women are uniformly insignificant. We conclude that the gay penalties and lesbian premiums in China, albeit imprecisely estimated, mirror those observed in Western labor markets and are most consistent with explanations based on conventional gender norms and intra-household specialization.

Suggested Citation

  • Deng, Zichen & Luo, Weixiang & Plug, Erik & Yu, Jia, 2025. "The Relationship Between Earnings and Sexual Orientation: First Evidence from China," IZA Discussion Papers 18317, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18317
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    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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