IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/980.html
   My bibliography  Save this paper

The Economics of Being LGBT. A Review: 2015-2020

Author

Listed:
  • Drydakis, Nick

Abstract

This paper reviews studies on LGBT workplace outcomes published between 2015 and 2020. In terms of earnings differences, in the US, Canada, Europe, and Australia, gay men were found to experience earnings penalties of 7% in comparison to heterosexual men, bisexual men experienced earnings penalties of 9% in comparison to heterosexual men, and bisexual women faced earnings penalties of 5% in comparison to heterosexual women. In the same regions, lesbian women experienced an earnings premium of 7% in comparison to heterosexual women. Trans women, in the US and Europe, faced earnings penalties ranging from 4% to 20%. In terms of job satisfaction, in the US, Canada, and Europe, gay men, and lesbian women experienced 15% and 12%, respectively lower job satisfaction than their heterosexual counterparts. Additionally, bullying against sexual minorities has persisted. In the UK, sexual minorities who experienced frequent school-age bullying faced a 32% chance of experiencing frequent workplace bullying. In relation to job exclusions, in OECD countries, gay men and lesbian women were found to experience 39% and 32%, respectively lower access to occupations than comparable heterosexual men and women. For trans men and women in Europe, comparable patterns are in evidence. Given these patterns, it is not of surprise that LGBT people in the US and the UK experience higher poverty rates than heterosexual and cis people. However, in these two regions, anti-discrimination laws and positive actions in the workplace helped reduce the earnings penalties for gay men, enhance trans people's self-esteem, spur innovation and firms' performance, and boost marketing capability, corporate profiles, and customer satisfaction. The evidence indicated that LGBT inclusion and positive economic outcomes mutually reinforced each other.

Suggested Citation

  • Drydakis, Nick, 2021. "The Economics of Being LGBT. A Review: 2015-2020," GLO Discussion Paper Series 980, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:980
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/246076/1/GLO-DP-0980.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. Mats Hammarstedt & Ali M. Ahmed & Lina Andersson, 2015. "Sexual Prejudice and Labor Market Outcomes for Gays and Lesbians: Evidence from Sweden," Feminist Economics, Taylor & Francis Journals, vol. 21(1), pages 90-109, January.
    3. Granberg, Mark & Andersson, Per A. & Ahmed, Ali, 2020. "Hiring Discrimination Against Transgender People: Evidence from a Field Experiment," Labour Economics, Elsevier, vol. 65(C).
    4. Alyssa Schneebaum & M. V. Lee Badgett, 2019. "Poverty in US Lesbian and Gay Couple Households," Feminist Economics, Taylor & Francis Journals, vol. 25(1), pages 1-30, January.
    5. Nick Drydakis, 2019. "School‐Age Bullying, Workplace Bullying and Job Satisfaction: Experiences of LGB People in Britain," Manchester School, University of Manchester, vol. 87(4), pages 455-488, July.
    6. 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.
    7. 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.
    8. 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.
    9. Nick Drydakis, 2024. "Trans people, well-being, and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 386-386, January.
    10. Benjamin Cerf, 2016. "Sexual Orientation, Income, and Stress at Work," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(4), pages 546-575, October.
    11. 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.
    12. Dan A. Black & Hoda R. Makar & Seth G. Sanders & Lowell J. Taylor, 2003. "The Earnings Effects of Sexual Orientation," ILR Review, Cornell University, ILR School, vol. 56(3), pages 449-469, April.
    13. Nick Drydakis, 2015. "Effect of Sexual Orientation on Job Satisfaction: Evidence from Greece," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 162-187, January.
    14. Geijtenbeek, Lydia & Plug, Erik, 2018. "Is there a penalty for registered women? Is there a premium for registered men? Evidence from a sample of transsexual workers," European Economic Review, Elsevier, vol. 109(C), pages 334-347.
    15. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
    16. 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.
    17. Christopher Jepsen & Lisa K. Jepsen, 2017. "Self-employment, earnings, and sexual orientation," Review of Economics of the Household, Springer, vol. 15(1), pages 287-305, March.
    18. Katerina Sidiropoulou & Nick Drydakis & Benjamin Harvey & Anna Paraskevopoulou, 2019. "Family support, school-age and workplace bullying for LGB people," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 717-730, October.
    19. Joseph J. Sabia, 2015. "Fluidity in Sexual Identity, Unmeasured Heterogeneity, and the Earnings Effects of Sexual Orientation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 33-58, January.
    20. Stephan Humpert, 2016. "Somewhere over the rainbow: sexual orientation and earnings in Germany," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(1), pages 69-98, April.
    21. Marie-Anne Valfort, 2017. "LGBTI in OECD Countries: A Review," OECD Social, Employment and Migration Working Papers 198, OECD Publishing.
    22. Andrea La Nauze, 2015. "Sexual orientation–based wage gaps in Australia: The potential role of discrimination and personality," The Economic and Labour Relations Review, , vol. 26(1), pages 60-81, March.
    23. Mohammed Hossain & Muhammad Atif & Ammad Ahmed & Lokman Mia, 2020. "Do LGBT Workplace Diversity Policies Create Value for Firms?," Journal of Business Ethics, Springer, vol. 167(4), pages 775-791, December.
    24. Bruce Elmslie & Edinaldo Tebaldi, 2007. "Sexual Orientation and Labor Market Discrimination," Journal of Labor Research, Springer, vol. 28(3), pages 436-453, July.
    25. Nick Drydakis, 2012. "Sexual orientation and labour relations: new evidence from Athens, Greece," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2653-2665, July.
    26. Maryam Dilmaghani, 2018. "Sexual Orientation, Labour Earnings, and Household Income in Canada," Journal of Labor Research, Springer, vol. 39(1), pages 41-55, March.
    27. 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.
    28. Christopher S. Carpenter & Samuel T. Eppink & Gilbert Gonzales, 2020. "Transgender Status, Gender Identity, and Socioeconomic Outcomes in the United States," ILR Review, Cornell University, ILR School, vol. 73(3), pages 573-599, May.
    29. Alex Bryson, 2017. "Pay equity after the Equality Act 2010: does sexual orientation still matter?," Work, Employment & Society, British Sociological Association, vol. 31(3), pages 483-500, June.
    30. Jamie H. Douglas & Michael D. Steinberger, 2015. "The Sexual Orientation Wage Gap for Racial Minorities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 59-108, January.
    31. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    32. 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).
    33. Sarah Bridges & Samuel Mann, 2019. "Sexual Orientation, Legal Partnerships and Wages in Britain," Work, Employment & Society, British Sociological Association, vol. 33(6), pages 1020-1038, December.
    34. Coral del Río & Olga Alonso‐Villar, 2019. "Occupational Achievements of Same‐Sex Couples in the United States by Gender and Race," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 704-731, October.
    35. Jing Wang & Morley Gunderson & David Wicks, 2018. "The Earnings Effect of Sexual Orientation: British Evidence from Worker‐Firm Matched Data," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 744-769, December.
    36. Alison Preston & Elisa Birch & Andrew R. Timming, 2019. "Sexual orientation and wage discrimination: evidence from Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(6), pages 629-648, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Michael E. Martell & Peyton Nash, 2020. "For Love and Money? Earnings and Marriage Among Same-Sex Couples," Journal of Labor Research, Springer, vol. 41(3), pages 260-294, September.
    4. 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).
    5. John Levendis & Aaron Lowen, 2023. "What Same-Sex Adoption Laws Can Tell Us About the Gender Wage Gap in the United States," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 473-489, June.
    6. Brahma, Sanjukta & Gavriilidis, Konstantinos & Kallinterakis, Vasileios & Verousis, Thanos & Zhang, Mengyu, 2023. "LGBTQ and finance," International Review of Financial Analysis, Elsevier, vol. 86(C).
    7. Drydakis, Nick, 2022. "M-Health Apps and Physical and Mental Health Outcomes of Sexual Minorities," GLO Discussion Paper Series 1121, Global Labor Organization (GLO).
    8. Maryam Dilmaghani, 2018. "Sexual Orientation, Labour Earnings, and Household Income in Canada," Journal of Labor Research, Springer, vol. 39(1), pages 41-55, March.
    9. Drydakis, Nick, 2021. "Social Rejection, Family Acceptance, Economic Recession and Physical and Mental Health of Sexual Minorities," IZA Discussion Papers 14733, Institute of Labor Economics (IZA).
    10. Erik Plug & Dinand Webbink & Nick Martin, 2014. "Sexual Orientation, Prejudice, and Segregation," Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 123-159.
    11. Shannon, Matthew, 2022. "The labour market outcomes of transgender individuals," Labour Economics, Elsevier, vol. 77(C).
    12. Ian Burn & Michael E. Martell, 2022. "Gender typicality and sexual minority labour market differentials," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 784-814, December.
    13. Dilmaghani, Maryam & Dean, Jason, 2020. "Sexual orientation and homeownership in Canada," Journal of Housing Economics, Elsevier, vol. 49(C).
    14. Mann, Samuel, 2021. "Transgender employment and gender marker laws," Labour Economics, Elsevier, vol. 73(C).
    15. Sarah Bridges & Samuel Mann, 2019. "Sexual Orientation, Legal Partnerships and Wages in Britain," Work, Employment & Society, British Sociological Association, vol. 33(6), pages 1020-1038, December.
    16. Jepsen, Christopher & Jepsen, Lisa, 2020. "Convergence Over Time or Not? U.S. Wages by Sexual Orientation, 2001-2018," IZA Discussion Papers 13495, Institute of Labor Economics (IZA).
    17. Sanghoon Lee, 2021. "Social Tolerance and Economic Development," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 1087-1103, December.
    18. Lina Aldén & Mats Hammarstedt & Hanna Swahnberg, 2020. "Sexual Orientation and Job Satisfaction: Survey-Based Evidence from Sweden," Journal of Labor Research, Springer, vol. 41(1), pages 69-101, June.
    19. 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.
    20. Doris Weichselbaumer, 2015. "Testing for Discrimination against Lesbians of Different Marital Status: A Field Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 131-161, January.

    More about this item

    Keywords

    Sexual Orientation; Gender Identity; Discrimination; Earnings; Poverty; Bullying; Job Satisfaction; Inclusivity;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:980. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.