Sexual Orientation and Study Cycle: Income Differences in Brazil

Abstract

This article aims to measure and analyze income disparities and discrimination between homosexuals and heterosexuals in different study cycles (low, medium, and high education) in Brazil. Recentered influence function (RIF) regressions and income decomposition (RIF decomposition) were performed using microdata from the Continuous National Household Sample Survey from two periods (2013 to 2015 and 2016 to 2019). The results show income disparities between homosexuals and heterosexuals. Income differences are different by gender and between both selected periods, although they are greater for highly skilled workers and women. Income decompositions showed that the explained effect was largely responsible for the difference in income between homosexuals and heterosexuals. The counterfactual effects – positive and negative – on the income of homosexuals generated by this effect were higher for men although a pattern of behavior was not found by study cycle or between periods. JEL codes: J12; J16; J31