Sexual Orientation and Labor Market Disparities

Miguel Sarzosa

Journal of Economic Behavior & Organization, 2023, vol. 212, issue C, 723-755

Abstract: This paper assesses labor market disparities against sexual minorities. My empirical strategy allows schooling, employment, and income to be endogenously determined relying on the identification of unobserved heterogeneity (skills and sexual orientation). I find that disparities are more prevalent at the employment margin than at the earnings margin. Sexual minorities are 10–20 percentage points less likely to be employed than comparable heterosexual adults. The results suggest that selection into employment contributes to the elimination of the observed income gaps among the employed as the average sexual-minority worker is more skilled than their heterosexual counterpart.

Keywords: Wage gap; Discrimination; Unobserved heterogeneity; Skills (search for similar items in EconPapers)
JEL-codes: J15 J24 J71 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:212:y:2023:i:c:p:723-755

DOI: 10.1016/j.jebo.2023.06.007

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