IDEAS home Printed from https://ideas.repec.org/a/bla/indres/v54y2015i1p33-58.html
   My bibliography  Save this article

Fluidity in Sexual Identity, Unmeasured Heterogeneity, and the Earnings Effects of Sexual Orientation

Author

Listed:
  • Joseph J. Sabia

Abstract

type="main" xml:id="irel12076-abs-0001"> Using data drawn from the National Longitudinal Study of Adolescent Health, this study (1) examines the sensitivity of the estimated earnings penalty of sexual minority status to family-level unobserved heterogeneity, and (2) explores whether the earnings effects of sexual orientation differ by the degree of fluidity in individuals' self-reported sexual identity over time. Evidence from sibling pairs suggests that unobserved family heterogeneity is not an important source of bias in the estimated relationship between sexual orientation and young adult earnings. I find that gay males and bisexuals earn lower wages than their heterosexual counterparts, while lesbians earn wages that are not significantly different from heterosexual females. Finally, I examine the role of fluidity in sexual orientation over time and find that males who are longer-term gay identifiers earn wages that are 26.4 percent lower than their consistently heterosexual-identifying counterparts.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:indres:v:54:y:2015:i:1:p:33-58
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/irel.2014.54.issue-1
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sabia, Joseph J. & Rees, Daniel I., 2012. "Body weight and wages: Evidence from Add Health," Economics & Human Biology, Elsevier, vol. 10(1), pages 14-19.
    2. Carpenter, Christopher S., 2007. "Revisiting the income penalty for behaviorally gay men: Evidence from NHANES III," Labour Economics, Elsevier, vol. 14(1), pages 25-34, January.
    3. Christopher S. Carpenter, 2008. "Sexual orientation, work, and income in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1239-1261, November.
    4. 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.
    5. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    6. Marieka Klawitter, 2011. "Multilevel analysis of the effects of antidiscrimination policies on earnings by sexual orientation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(2), pages 334-358, March.
    7. M. V. Lee Badgett, 1995. "The Wage Effects of Sexual Orientation Discrimination," ILR Review, Cornell University, ILR School, vol. 48(4), pages 726-739, July.
    8. John M. Blandford, 2003. "The Nexus of Sexual Orientation and Gender in the Determination of Earnings," ILR Review, Cornell University, ILR School, vol. 56(4), pages 622-642, July.
    9. Plug, Erik & Berkhout, Peter, 2008. "Sexual Orientation, Disclosure and Earnings," IZA Discussion Papers 3290, Institute of Labor Economics (IZA).
    10. Lex Borghans & Bas ter Weel & Bruce A. Weinberg, 2008. "Interpersonal Styles and Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    11. Daniel Klepinger & Shelly Lundberg & Robert Plotnick, 1999. "How Does Adolescent Fertility Affect the Human Capital and Wages of Young Women?," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 421-448.
    12. Erik Plug & Peter Berkhout, 2004. "Effects of sexual preferences on earnings in the Netherlands," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 117-131, February.
    13. 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.
    14. 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.
    15. Brendan Cushing‐Daniels & Tsz‐Ying Yeung, 2009. "Wage Penalties And Sexual Orientation: An Update Using The General Social Survey," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 164-175, April.
    16. Joseph J. Sabia, 2014. "Sexual Orientation and Wages in Young Adulthood: New Evidence from Add Health," ILR Review, Cornell University, ILR School, vol. 67(1), pages 239-267, January.
    17. Dan A. Black & Seth G. Sanders & Lowell J. Taylor, 2007. "The Economics of Lesbian and Gay Families," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 53-70, Spring.
    18. Jeff Frank, 2006. "Gay Glass Ceilings," Economica, London School of Economics and Political Science, vol. 73(291), pages 485-508, August.
    19. Sylvia A. Allegretto & Michelle M. Arthur, 2001. "An Empirical Analysis of Homosexual/Heterosexual Male Earnings Differentials: Unmarried and Unequal?," ILR Review, Cornell University, ILR School, vol. 54(3), pages 631-646, April.
    20. Christopher S. Carpenter, 2005. "Self-Reported Sexual Orientation and Earnings: Evidence from California," ILR Review, Cornell University, ILR School, vol. 58(2), pages 258-273, January.
    21. Nathan Berg & Donald Lien, 2002. "Measuring The Effect Of Sexual Orientation On Income: Evidence Of Discrimination?," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 394-414, October.
    22. Ali Ahmed & Mats Hammarstedt, 2010. "Sexual orientation and earnings: a register data-based approach to identify homosexuals," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 835-849, June.
    23. Christopher S. Carpenter, 2008. "Sexual orientation, work, and income in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1239-1261, November.
    24. Gerrit Mueller & Erik Plug, 2006. "Estimating the Effect of Personality on Male and Female Earnings," ILR Review, Cornell University, ILR School, vol. 60(1), pages 3-22, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sabia, Joseph J. & Wooden, Mark, 2015. "Sexual Identity, Earnings, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," IZA Discussion Papers 8935, Institute of Labor Economics (IZA).
    2. 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.
    3. Das, Tirthatanmoy & Polachek, Solomon, 2017. "Micro Foundations of Earnings Differences," IZA Discussion Papers 10922, Institute of Labor Economics (IZA).
    4. Sabia, Joseph J. & Wooden, Mark & Nguyen, Thanh Tam, 2018. "Sexual identity, same-same relationships, and health dynamics: New evidence from Australia," Economics & Human Biology, Elsevier, vol. 30(C), pages 24-36.
    5. Martell, Michael E., 2021. "Labor market differentials estimated with researcher-inferred and self-identified sexual orientation," Economics Letters, Elsevier, vol. 205(C).
    6. 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.
    7. Drydakis, Nick, 2021. "The Economics of Being LGBT. A Review: 2015-2020," GLO Discussion Paper Series 980, Global Labor Organization (GLO).
    8. Joseph J. Sabia & Mark Wooden & Thanh Tam Nguyen, 2017. "Sexual Identity, Same‐Sex Relationships, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 903-931, April.
    9. 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.
    10. 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.
    11. Sarzosa, Miguel, 2023. "Sexual Orientation and Labor Market Disparities," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 723-755.
    12. Michael E. Martell & Leanne Roncolato, 2023. "Economic Vulnerability of Sexual Minorities: Evidence from the US Household Pulse Survey," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-74, April.
    13. Sean Urwin & Thomas Mason & William Whittaker, 2021. "Do different means of recording sexual orientation affect its relationship with health and wellbeing?," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3106-3122, December.

    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. Joseph J. Sabia & Mark Wooden & Thanh Tam Nguyen, 2017. "Sexual Identity, Same‐Sex Relationships, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 903-931, April.
    2. Michael E. Martell, 2018. "Identity Management: Worker Independence And Discrimination Against Gay Men," Contemporary Economic Policy, Western Economic Association International, vol. 36(1), pages 136-148, January.
    3. Marieka Klawitter, 2015. "Meta-Analysis of the Effects of Sexual Orientation on Earnings," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(1), pages 4-32, January.
    4. 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.
    5. Doris Weichselbaumer, 2013. "Discrimination in gay and lesbian lives," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 15, pages 236-254, Edward Elgar Publishing.
    6. Maryam Dilmaghani, 2018. "Sexual Orientation, Labour Earnings, and Household Income in Canada," Journal of Labor Research, Springer, vol. 39(1), pages 41-55, March.
    7. Stephan Humpert, 2012. "Somewhere over the Rainbow: Sexual Orientation Discrimination in Germany," Working Paper Series in Economics 245, University of Lüneburg, Institute of Economics.
    8. Josef Montag, 2015. "What Drives the Gender Gap? An Analysis Using Sexual Orientation," Kyklos, Wiley Blackwell, vol. 68(4), pages 577-608, November.
    9. 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.
    10. Ali M. Ahmed & Lina Andersson & Mats Hammarstedt, 2013. "Are Gay Men and Lesbians Discriminated against in the Hiring Process?," Southern Economic Journal, John Wiley & Sons, vol. 79(3), pages 565-585, January.
    11. Michael E. Martell, 2014. "HOW ENDAs EXTEND THE WORKWEEK: LEGAL PROTECTION AND THE LABOR SUPPLY OF BEHAVIORALLY GAY MEN," Contemporary Economic Policy, Western Economic Association International, vol. 32(3), pages 560-577, July.
    12. Mary Eschelbach Hansen & Michael E. Martell, 2014. "Self-Identified Sexual Orientation and the Lesbian Earnings Differential," Working Papers 2014-13, American University, Department of Economics.
    13. Thierry Laurent & Ferhat Mihoubi, 2012. "Sexual Orientation and Wage Discrimination in France: The Hidden Side of the Rainbow," Journal of Labor Research, Springer, vol. 33(4), pages 487-527, December.
    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. Christafore, David & Leguizamon, Sebastian, 2012. "Earnings differences between homosexuals and heterosexuals and the effects of anti-discriminatory laws: equal but still unmarried," MPRA Paper 45267, University Library of Munich, Germany.
    16. 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.
    17. Noah Uhrig, S.C., 2014. "An examination of poverty and sexual orientation in the UK," ISER Working Paper Series 2014-02, Institute for Social and Economic Research.
    18. Jepsen, Christopher & Jepsen, Lisa K., 2009. "Does home ownership vary by sexual orientation?," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 307-315, May.
    19. Geijtenbeek, Lydia & Plug, Erik, 2015. "Is There a Penalty for Becoming a Woman? Is There a Premium for Becoming a Man? Evidence from a Sample of Transsexual Workers," IZA Discussion Papers 9077, Institute of Labor Economics (IZA).
    20. Madeline Zavodny, 2008. "Is there a ‘marriage premium’ for gay men?," Review of Economics of the Household, Springer, vol. 6(4), pages 369-389, December.

    More about this item

    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:bla:indres:v:54:y:2015:i:1:p:33-58. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676 .

    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.