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Is There a Penalty for Becoming a Woman? Is There a Premium for Becoming a Man? Evidence from a Sample of Transsexual Workers

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  • Geijtenbeek, Lydia

    (University of Amsterdam)

  • Plug, Erik

    (University of Amsterdam)

Abstract

We study the earnings of transsexuals using Dutch administrative labor force data. First, we compare transsexuals to other women and men, and find that transsexuals earn more than women and less than men. Second, we compare transsexuals before and after transition using worker fixed effects models, and find a fall in earnings for men who become women and a smaller rise (if any) in earnings for women who become men. These earnings patterns, which hold for annual as well as hourly earnings, are consistent with a labor market model in which workers are discriminated for being female and transsexual.

Suggested Citation

  • Geijtenbeek, Lydia & Plug, Erik, 2015. "Is There a Penalty for Becoming a Woman? Is There a Premium for Becoming a Man? Evidence from a Sample of Transsexual Workers," IZA Discussion Papers 9077, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9077
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    References listed on IDEAS

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    1. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    2. Erik Plug & Peter Berkhout, 2004. "Effects of sexual preferences on earnings in the Netherlands," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 117-131, February.
    3. Suzanne Heller Clain & Karen Leppel, 2001. "An investigation into sexual orientation discrimination as an explanation for wage differences," Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 37-47.
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    6. Bosch, Nicole & van der Klaauw, Bas, 2012. "Analyzing female labor supply — Evidence from a Dutch tax reform," Labour Economics, Elsevier, vol. 19(3), pages 271-280.
    7. 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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    9. Buser, Thomas & Geijtenbeek, Lydia & Plug, Erik, 2015. "Do Gays Shy Away from Competition? Do Lesbians Compete Too Much?," IZA Discussion Papers 9382, Institute of Labor Economics (IZA).
    10. Schilt Kristen & Wiswall Matthew, 2008. "Before and After: Gender Transitions, Human Capital, and Workplace Experiences," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-28, September.
    11. 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.
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    Cited by:

    1. Nick Drydakis, 2017. "Trans people, well-being, and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 386-386, September.

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    More about this item

    Keywords

    labor market outcomes; gender; transsexuals; discrimination;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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