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What Can Life Satisfaction Data Tell Us About Discrimination Against Sexual Minorities? A Structural Equation Model for Australia and the United Kingdom

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  • Nattavudh Powdthavee
  • Mark Wooden

Abstract

Very little is known about how the differential treatment of sexual minorities could influence subjective reports of overall well-being. This paper seeks to fill this gap. Data from two large surveys that provide nationally representative samples for two different countries - Australia (the HILDA Survey) and the UK (the UK Household Longitudinal Study) - are used to estimate a simultaneous equations model of life satisfaction. The model allows for self-reported sexual identity to influence a measure of life satisfaction both directly and indirectly through seven different channels: (i) income; (ii) employment; (iii) health (iv) partner relationships; (v) children; (vi) friendship networks; and (vii) education. Lesbian, gay and bisexual persons are found to be significantly less satisfied with their lives than otherwise comparable heterosexual persons. In both countries this is the result of a combination of direct and indirect effects.

Suggested Citation

  • Nattavudh Powdthavee & Mark Wooden, 2014. "What Can Life Satisfaction Data Tell Us About Discrimination Against Sexual Minorities? A Structural Equation Model for Australia and the United Kingdom," CEP Discussion Papers dp1267, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1267
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    Cited by:

    1. Crispin H. V. Cooper, 2020. "Quantitative Models of Well-Being to Inform Policy: Problems and Opportunities," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    2. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.
    3. Madhu S. Mohanty, 2018. "Does Positive Attitude Matter Only for Older Workers? Evidence from Simultaneous Estimation of Job Satisfaction, Wage and Positive Attitude in the United States," Journal of Happiness Studies, Springer, vol. 19(8), pages 2373-2404, December.

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    More about this item

    Keywords

    Sexual orientation; sexual minorities; discrimination; life satisfaction; HILDA survey; UKHLS;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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