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Sexual Orientation and Labor Market Disparities

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  • Sarzosa, Miguel

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.

Suggested Citation

  • Sarzosa, Miguel, 2023. "Sexual Orientation and Labor Market Disparities," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 723-755.
    • Handle: RePEc:eee:jeborg:v:212:y:2023:i:c:p:723-755
    DOI: 10.1016/j.jebo.2023.06.007
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    More about this item

    Keywords

    Wage gap; Discrimination; Unobserved heterogeneity; Skills;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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