Age and the new lesbian earnings penalty

Purpose - The purpose of this paper is to observe how the cohabiting lesbian earnings differential in the USA has changed since the early 2000s, a time period during which the lesbian, gay and bisexual rights movement has been very successful. Design/methodology/approach - The author analyzes the 2012–2017 American Community Survey using Mincer-style income regressions. Findings - The author finds that cohabiting lesbians earn approximately 11 percent less than married heterosexual women. The earnings penalty has emerged as a result of the disproportionately large penalty young lesbians’ experience. While older lesbians (over 45) do not experience an earnings penalty, younger lesbians appear doubly disadvantaged. They now face a lesbian wage gap of approximately 24 percent in addition to the previously documented gender wage gap. Research limitations/implications - The paper shows that cohabiting lesbians earn approximately 11 percent less than married heterosexual women. The earnings penalty has emerged as a result of the disproportionately large penalty young cohabiting lesbians experience. While older cohabiting lesbians (over 45) do not experience an earnings penalty, younger cohabiting lesbians face a wage gap of approximately 24 percent. Originality/value - The study finds, contrary to most previous research, a cohabiting lesbian earnings penalty instead of premium. The findings highlight that there is considerable heterogeneity in the economic experience of cohabiting lesbians, and that young cohabiting lesbians comprise a particularly vulnerable population.