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Sexual Orientation, Disclosure and Earnings

  • Plug, Erik

    ()

    (University of Amsterdam)

  • Berkhout, Peter

    ()

    (RIGO Research Institute)

Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men.

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File URL: http://ftp.iza.org/dp3290.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3290.

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Length: 20 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3290
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  1. Christopher S. Carpenter, 2005. "Self-reported sexual orientation and earnings: Evidence from California," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(2), pages 258-273, January.
  2. Erik Plug & Peter Berkhout, 2004. "Effects of sexual preferences on earnings in the Netherlands," Journal of Population Economics, Springer, vol. 17(1), pages 117-131, February.
  3. Dan A. Black & Hoda R. Makar & Seth G. Sanders & Lowell J. Taylor, 2003. "The earnings effects of sexual orientation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 449-469, April.
  4. Reza Arabsheibani & A Marin & Jonathan Wadsworth, 2006. "Gay Pay in the UK," CentrePiece - The Magazine for Economic Performance 201, Centre for Economic Performance, LSE.
    • G. Reza Arabsheibani & Alan Marin & Jonathan Wadsworth, 2005. "Gay Pay in the UK," Economica, London School of Economics and Political Science, vol. 72(286), pages 333-347, 05.
  5. Nathan Berg & Donald Lien, 2002. "Measuring The Effect Of Sexual Orientation On Income: Evidence Of Discrimination?," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 394-414, October.
  6. M. V. Lee Badgett, 1995. "The Wage Effects of Sexual Orientation Discrimination," ILR Review, Cornell University, ILR School, vol. 48(4), pages 726-739, July.
  7. Carpenter, Christopher S., 2007. "Revisiting the income penalty for behaviorally gay men: Evidence from NHANES III," Labour Economics, Elsevier, vol. 14(1), pages 25-34, January.
  8. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  9. John M. Blandford, 2003. "The nexus of sexual orientation and gender in the determination of earnings," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(4), pages 622-642, July.
  10. Christopher S. Carpenter, 2005. "Self-Reported Sexual Orientation and Earnings: Evidence from California," ILR Review, Cornell University, ILR School, vol. 58(2), pages 258-273, January.
  11. M. V. Lee Badgett, 1995. "The wage effects of sexual orientation discrimination," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 726-739, July.
  12. John M. Blandford, 2003. "The Nexus of Sexual Orientation and Gender in the Determination of Earnings," ILR Review, Cornell University, ILR School, vol. 56(4), pages 622-642, July.
  13. Dan A. Black & Seth G. Sanders & Lowell J. Taylor, 2007. "The Economics of Lesbian and Gay Families," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 53-70, Spring.
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