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Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights

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  • Drydakis, Nick
  • Zimmermann, Klaus F.

Abstract

The paper initiates a research agenda to study new developments of the effects of sexual orientation and gender identity on the labour market performance of individuals. It presents a selection of the small previous literature to establish the important spectrum of topics and identify important challenges to compare them to the papers in the special issue of the International Journal of Manpower (Volume 41, Issue 6) dedicated to Sexual Orientation and the Labor Market. We rely on quantitative empirical studies and compare findings along a variety of topics such as, earnings patterns, occupational access constraints, relationships between subjective well-being indicators and marriage status, workplace experiences and family support all along the sexual orientation and gender identity issues. Contrary to the earlier literature, the most recent studies have found that gay men received either the same wages or higher wages compared to heterosexual men, while lesbian women have been found to receive lower wages in comparison to heterosexual women. We reveal the new evidence on this emerging puzzling pattern of sexual orientation and wages, but highlight also other innovations in the special issue: (i) the first ever meta-analysis of field experiments on occupational access discrimination based on sexual orientation, (ii) utilizing the moderating role of marital status and family support, (iii) studying occupational access discrimination based on gender identity, and (iv) evaluate how distastes, stereotypes, and positive workplace actions affect trans people’s labour market performance. The article attempts to provide a fast and insightful guidance to the major challenges, received wisdom and open issues in the field of sexual orientation and gender identity at work and in the labour market. We summarize the implications provided in all chapters to develop the best evidence-based policy making.

Suggested Citation

  • Drydakis, Nick & Zimmermann, Klaus F., 2020. "Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights," GLO Discussion Paper Series 627, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:627
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    References listed on IDEAS

    as
    1. Nick Drydakis, 2019. "Sexual orientation and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 111-111, July.
    2. Michael E. Martell, 2019. "Age and the new lesbian earnings penalty," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 649-670, July.
    3. Boeri, Tito & Patacchini, Eleonora & Peri, Giovanni (ed.), 2015. "Unexplored Dimensions of Discrimination," OUP Catalogue, Oxford University Press, number 9780198729853.
    4. David Neumark & Judith Rich, 2019. "Do Field Experiments on Labor and Housing Markets Overstate Discrimination? A Re-examination of the Evidence," ILR Review, Cornell University, ILR School, vol. 72(1), pages 223-252, January.
    5. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    6. Nick Drydakis & Peter MacDonald & Vangelis Chiotis & Laurence Somers, 2018. "Age discrimination in the UK labour market. Does race moderate ageism? An experimental investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 25(1), pages 1-4, January.
    7. Christopher S. Carpenter & Samuel T. Eppink, 2017. "Does It Get Better? Recent Estimates of Sexual Orientation and Earnings in the United States," Southern Economic Journal, John Wiley & Sons, vol. 84(2), pages 426-441, October.
    8. Cevat G. Aksoy & Christopher S. Carpenter & Jeff Frank, 2018. "Sexual Orientation and Earnings: New Evidence from the United Kingdom," ILR Review, Cornell University, ILR School, vol. 71(1), pages 242-272, January.
    9. 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.
    10. Simon Chang, 2021. "The sex ratio and global sodomy law reform in the post-WWII era," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 401-430, April.
    11. Nick Drydakis, 2014. "Sexual orientation discrimination in the Cypriot labour market. Distastes or uncertainty?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(5), pages 720-744, July.
    12. Nick Drydakis, 2024. "Trans people, well-being, and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 386-386, January.
    13. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
    14. Hannah Van Borm & Marlot Dhoop & Allien Van Acker & Stijn Baert, 2020. "What does someone's gender identity signal to employers?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 753-777, March.
    15. Maryam Dilmaghani, 2019. "Exploring the link between sexual orientation, work-life balance satisfaction and work-life segmentation," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 693-715, July.
    16. Francisco Perales, 2016. "The Costs of Being “Different”: Sexual Identity and Subjective Wellbeing over the Life Course," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 827-849, June.
    17. Christopher Carpenter, 2008. "Sexual orientation, income, and non-pecuniary economic outcomes: new evidence from young lesbians in Australia," Review of Economics of the Household, Springer, vol. 6(4), pages 391-408, December.
    18. Marie-Anne Valfort, 2017. "LGBTI in OECD Countries: A Review," OECD Social, Employment and Migration Working Papers 198, OECD Publishing.
    19. Marieka Klawitter, 2015. "Meta-Analysis of the Effects of Sexual Orientation on Earnings," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 4-32, January.
    20. Powdthavee, Nattavudh & Wooden, Mark, 2015. "Life satisfaction and sexual minorities: Evidence from Australia and the United Kingdom," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 107-126.
    21. Eleonora Patacchini & Giuseppe Ragusa & Yves Zenou, 2015. "Unexplored dimensions of discrimination in Europe: homosexuality and physical appearance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1045-1073, October.
    22. Badgett, M.V. Lee & Waaldijk, Kees & Rodgers, Yana van der Meulen, 2019. "The relationship between LGBT inclusion and economic development: Macro-level evidence," World Development, Elsevier, vol. 120(C), pages 1-14.
    23. Colin Cannonier & Monica Galloway Burke, 2019. "The impact of party affiliation of governor and state political ideology on the labor market outcomes of transgender individuals," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 779-808, October.
    24. Ali Ahmed & Mats Hammarstedt, 2010. "Sexual orientation and earnings: a register data-based approach to identify homosexuals," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 835-849, June.
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    Cited by:

    1. Nick Drydakis, 2022. "Sexual orientation discrimination in the labor market against gay men," Review of Economics of the Household, Springer, vol. 20(3), pages 1027-1058, September.
    2. Drydakis, Nick, 2021. "Social Rejection, Family Acceptance, Economic Recession and Physical and Mental Health of Sexual Minorities," GLO Discussion Paper Series 936, Global Labor Organization (GLO).
    3. Drydakis, Nick, 2021. "The Economics of Being LGBT. A Review: 2015-2020," IZA Discussion Papers 14845, Institute of Labor Economics (IZA).
    4. Nick Drydakis, 2022. "Sexual orientation and earnings: a meta-analysis 2012–2020," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 409-440, April.
    5. Luca Fumarco & Benjamin Harrell & Patrick Button & David Schwegman & E Dils, 2020. "Gender Identity, Race, and Ethnicity-based Discrimination in Access to Mental Health Care: Evidence from an Audit Correspondence Field Experiment," NBER Working Papers 28164, National Bureau of Economic Research, Inc.
    6. Drydakis, Nick, 2022. "M-Health Apps and Physical and Mental Health Outcomes of Sexual Minorities," GLO Discussion Paper Series 1121, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Sexual orientation; gender identity; sexual discrimination;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • 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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