Gay Pay for Straight Work

Abstract

drawing from the gender wage gap literature, we explore four possible causes of sexual minority earnings gaps: (1) variation in human capital and labor force participation, (2) occupational and industrial sorting, (3) differences in the institutional organization of the public and private sector, and (4) different returns to marriage and parenthood. Using the 2006 census of canada, we find that heterosexual men earn more than gay men, followed by lesbians and heterosexual women. oaxaca-Blinder decompositions show that industry of employment, rather than occupation, disadvantages gay men, lesbians, and heterosexual women. High levels of educational attainment lead to employment in lucrative occupations, but sexual minorities earn significantly less than heterosexual men within these occupations. wage gaps are reduced in the public sector for heterosexual women, gay men, and lesbians. Finally, we find that heterosexual women experience a motherhood penalty, heterosexual men experience a fatherhood premium, and both receive a premium for marriage; however, the presence of children and marriage have no effect on the earnings of either gay men or lesbians in conjugal relationships.

Is it safe to bring myself to work? Understanding LGBTQ experiences of workplace dignity

“…Once LGBTQ employees gain access to the workplace, they may have difficulty being promoted or maintaining secure employment. In Canada, white, gay men with partners earn 5% less than heterosexual men with partners (Waite & Denier, 2015), which is similar to the pay disparity in the US workforce (Pinsker, 2015). Finally, LGBTQ employees experience discrimination in terms of equal pay and benefits.…”

Sexual orientation at work: Documenting and understanding wage inequality

“…For instance, Aksoy et al (2018) find that lesbian women specialize less than heterosexual women, which may explain why lesbians have a wage advantage. Evidence also suggests that gay men do not have access to the fatherhood bonus (Mize, 2016;Waite & Denier, 2015). Still, even accounting for family formation and household specialization, many studies document wage penalties.…”

“…For instance, gay men are less likely than heterosexual men to work in manufacturing and primary industries but more likely to work in the services, which may contribute to lower wages net of human capital. Lesbian women are more likely than heterosexual women to work in manufacturing and craft occupations, which may contribute to a wage advantage (Waite & Denier, 2015). Knight et al (2016) find that sexual minorities are more likely to sort into task-independent occupations, perhaps as a strategy to avoid managing stigmatized identities.…”

“…Knight et al (2016) find that sexual minorities are more likely to sort into task-independent occupations, perhaps as a strategy to avoid managing stigmatized identities. Sexual minorities are also concentrated in public sector and nonprofit employment and differ from heterosexuals in their propensity for self-employment, which could provide unique wage opportunities (Waite & Denier, 2015. Again, differences in human capital, occupation, and industry explain some, but not all, of reported wage differences (Antecol, Jong, & Steinberger, 2008;Badgett, 1995;Klawitter, 2015;Waite & Denier, 2015).…”

“…New questions on population-representative surveys have shifted focus to documenting sexual orientation wage gaps. Large-scale studies of wage inequality have been published almost exclusively by labor economists (for a review, see Klawitter, 2015; sociological exceptions include Baumle, 2009;Baumle & Poston, 2011;Denier & Waite, 2016Mize, 2016;Waite & Denier, 2015). Insights from these diverse literatures have not been fully incorporated with one another.…”