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The Cost of Coming Out

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Abstract

The fear of social stigma and discrimination leads many individuals worldwide to hesitate in openly disclosing their sexual orientation. Due to the large costs of concealing identity, it is crucial to understand the extent of anti-LGB sentiments and reactions to coming out. However, disclosing one’s sexual orientation is a personal choice, complicating data access and introducing endogeneity issues. This paper tackles these challenges by using an innovative data source from a popular online video game together with a natural experiment. We exploit exogenous variation in the identity of a playable character to identify the effects of disclosure on players’ revealed preferences for that character. Leveraging detailed daily data, we monitor players’ preferences for the character across diverse regions globally and employ synthetic control methods to isolate the effect of the disclosure on players’ preferences. Our findings reveal a substantial and persistent negative impact of coming out. To strengthen the plausibility of social stigma as the primary explanation for the estimated effects, we systematically address and eliminate several alternative game-related channels.

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  • Enzo Brox & Riccardo Di Francesco, 2024. "The Cost of Coming Out," CEIS Research Paper 572, Tor Vergata University, CEIS, revised 16 Apr 2024.
    • Handle: RePEc:rtv:ceisrp:572
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    More about this item

    Keywords

    LGB economics; social stigma; concealable stigma;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law

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