Effect of State and Local Sexual Orientation Anti-Discrimination Laws on Labor Market Differentials
60 Pages Posted: 3 Aug 2020 Last revised: 3 Apr 2024
Date Written: April 1, 2024
Abstract
This paper presents the first quasi-experimental research examining the effect of both local and state anti-discrimination laws on sexual orientation on the labor supply and wages of lesbian, gay, and bisexual (LGB) workers. To do so, we use the American Community Survey data on household composition to infer sexual orientation and combine this with a unique panel dataset on state and local anti-discrimination laws. Using variation in law implementation across localities over time and between same-sex and different-sex couples, we find that anti-discrimination laws significantly reduce gaps in labor force participation rate and employment for male same-sex couples relative to men in different-sex couples. These laws also significantly reduce the employment premium for female same-sex couples relative to women in different-sex couples. One explanation for the reduced labor supply is that female same-sex couples begin to have more children in response to the laws. Finally, we present evidence that state anti-discrimination laws significantly and persistently increased support for same-sex marriage. This research shows that anti-discrimination laws can be an effective policy tool for reducing labor market inequalities across sexual orientation and improving sentiment toward LGB Americans.
Keywords: sexual orientation, discrimination, LGBT, LGBTQ, anti-discrimination laws, laws, labor, labor market, labor market differentials, pay gap, gay pay gap, pay premium, lesbian pay premium, public opinion, polling, same-sex marriage, same-sex marriage legalization
JEL Classification: J31, J71, J78, K31
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