Sexual Orientation and Earnings: New Evidence from the UK

36 Pages Posted: 8 Feb 2018

See all articles by Cevat Giray Aksoy

Cevat Giray Aksoy

European Bank for Reconstruction and Development; King’s College London; IZA Institute of Labor Economics

Christopher Carpenter

Vanderbilt University - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)

Jeff Frank

University of London, Royal Holloway College - Department of Economics

Date Written: December 8, 2016

Abstract

Most prior work on sexual orientation and labour market earnings has relied either on individual-level surveys with small samples of sexual minorities or has used large samples of same-sex couples. We use a large individual-level dataset that allows us to measure both constructs. We replicate the well-documented lesbian advantage and gay male penalty in couples-based comparisons but show that these effects are absent in similarly specified models of non-partnered workers. This suggests both that couples-based samples overstate the true earnings differences attributable to a minority sexual orientation and that household specialisation plays an important role in the lesbian earnings advantage. Finally, we discuss how the effects reconcile with theories of specialisation and discrimination.

Keywords: earnings, sexual orientation, discrimination, labour market

JEL Classification: J15, J71, F14, F15

Suggested Citation

Aksoy, Cevat Giray and Carpenter, Christopher and Frank, Jeff, Sexual Orientation and Earnings: New Evidence from the UK (December 8, 2016). EBRD Working Paper No. 196, Available at SSRN: https://ssrn.com/abstract=3119665 or http://dx.doi.org/10.2139/ssrn.3119665

Cevat Giray Aksoy (Contact Author)

European Bank for Reconstruction and Development ( email )

One Exchange Square
London EC2A 2JN
United Kingdom

King’s College London ( email )

Aldwych
London, WC2A 2AE
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Christopher Carpenter

Vanderbilt University - College of Arts and Science - Department of Economics ( email )

Box 1819 Station B
Nashville, TN 37235
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jeff Frank

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom
+44 20 8265 4203 (Phone)

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