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Not so classy after all: Identity utility and the risk of discrimination of LGB people

Author

Listed:
  • Botti, Fabrizio
  • Conte, Anna
  • D'Ippoliti, Carlo

Abstract

The present study contributes to the literature on the economics of discrimination by considering some consequences of sexual orientation discrimination. Specifically, we analyse LGB people's decision to "come out" within an identity utility theoretical framework, and estimate the model on a representative sample of the EU population. We aim to investigate the factors that systematically affect a person's inclusion in competing definitions of LGB people and the potential role of sample selection biases, such as the one leading to the commonplace mistaken assumption of the affluence of gay men. Interval regression estimates of the risk attitude coefficient within the choice to come out suggest that heterogeneity in the objective dimensions of socio-economic welfare may explain a sample selection between "out" and "closeted" LGB people, which lies behind the "myth of gay affluence".

Suggested Citation

  • Botti, Fabrizio & Conte, Anna & D'Ippoliti, Carlo, 2015. "Not so classy after all: Identity utility and the risk of discrimination of LGB people," MPRA Paper 65125, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:65125
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    File URL: https://mpra.ub.uni-muenchen.de/65125/1/MPRA_paper_65125.pdf
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    References listed on IDEAS

    as
    1. Loomes, Graham & Moffatt, Peter G & Sugden, Robert, 2002. "A Microeconometric Test of Alternative Stochastic Theories of Risky Choice," Journal of Risk and Uncertainty, Springer, vol. 24(2), pages 103-130, March.
    2. Ali M. Ahmed & Mats Hammarstedt, 2009. "Detecting Discrimination against Homosexuals: Evidence from a Field Experiment on the Internet," Economica, London School of Economics and Political Science, vol. 76(303), pages 588-597, July.
    3. Botti, Fabrizio & D’Ippoliti, Carlo, 2014. "Don’t ask don’t tell (that you’re poor). Sexual orientation and social exclusion in Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 8-25.
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    5. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
    6. Nathan Berg & Donald Lien, 2006. "Same-sex sexual behaviour: US frequency estimates from survey data with simultaneous misreporting and non-response," Applied Economics, Taylor & Francis Journals, vol. 38(7), pages 757-769.
    7. Katherine B. Coffman & Lucas C. Coffman & Keith M. Marzilli Ericson, 2013. "The Size of the LGBT Population and the Magnitude of Anti-Gay Sentiment are Substantially Underestimated," NBER Working Papers 19508, National Bureau of Economic Research, Inc.
    8. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
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    11. Nick Drydakis, . "Womenâ??s Sexual Orientation and Labor Market Outcomes," Working Papers 0907, University of Crete, Department of Economics.
    12. Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-457, March.
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    More about this item

    Keywords

    Identity utility; Expected utility; Sexual Orientation; Disclosure;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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