Sexual Orientation, Disclosure and Earnings

Erik Plug () and Peter Berkhout ()
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Peter Berkhout: RIGO Research Institute

No 3290, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men.

Keywords: sexual orientation; disclosure; earnings; discrimination; selection (search for similar items in EconPapers)
JEL-codes: J15 J24 J71 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008-01
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (15)

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