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Pink Papers: LGBT Economics

Paper Session

Saturday, Jan. 4, 2020 8:00 AM - 10:00 AM (PDT)

Marriott Marquis, Grand Ballroom 11
Hosted By: American Economic Association
  • Chair: Lee Badgett, University of Massachusetts-Amherst

Adherence to Gender Typicality as an Explanation of the Gender Asymmetry in Sexual Orientation Wage Differentials

Ian Burn
,
Stockholm University
Michael Martell
,
Bard College

Abstract

Using data from the National Longitudinal Study of Adolescent to Adult Health (AddHealth), we employ machine learning algorithms to construct a relative measure of gender conformity based on responses to questions about personality, behavior, and expectations asked in Waves 1 and 2 of the survey. We compare this relative measure of gender performance with a more gender essentialist measure of masculinity and femininity from the Bem Sex Role Inventory to show that our measure of gender conformity captures true differences in gender. We document how the distributions of gender conformity, masculinity, and femininity vary by sex, race, and other demographic characteristics. Exploiting the longitudinal nature of the AddHealth data, we document how economic and health outcomes differ by quartile of gender conformity in Waves 3, 4 and 5 of the survey when the respondents are between the ages of 18 and 45. We also explore how consistent gender conformity is as respondents age and investigate correlations between labor market outcomes and contemporaneously measured gender conformity. This allows us to investigate sex-based wage differentials across the entire distribution of masculinity and femininity.

Unobserved Heterogeneity and Labor Market Discrimination against Homosexuals

Miguel Sarzosa
,
Purdue University

Abstract

Sexual minorities have historically been subject to many kinds of discrimination. Prejudicial treatment in the labor market could arguably be one of them. Despite that, economic literature has remained mostly silent on the topic. This paper fills that void by leveraging on a novel longitudinal data set that collects detailed information on sexual orientation. I develop an empirical strategy that exploits the fact that sexuality is not a dichotomous trait but rather a wide assortment of sexual preferences. I use empirical models that rely on the identification of unobserved heterogeneity, in the forms of skills and sexual orientation, to allow schooling, employment, and income to be endogenously determined. I find that, after controlling for differences in skills distributions, there are no income gaps against employed homosexuals. However, consistent with the existence of discrimination, homosexuals are 10–20 percentage points less likely to be employed than heterosexuals. These gaps cannot be explained by differences in observable characteristics or skills and are larger among men and the college educated. The results suggest that selection on the employment margin contributes to the elimination of the income gaps as only the highly skilled homosexuals—and thus, higher paid—are employed.

Cigarette Taxes and Adult Smoking Among Sexual Minority Adults

Dario Sansone
,
Vanderbilt University

Abstract

We provide the first quasi-experimental evidence on the relationship between cigarette taxes and sexual minority adult smoking by studying individuals in same-sex households (a large share of whom are in same-sex romantic relationships) from the 1996-2018 Behavioral Risk Factor Surveillance System. We find that cigarette taxes significantly reduced smoking among men and women in same-sex households, and the effects we find for men in same-sex households are significantly larger than the associated effects for men in different-sex households (the vast majority of whom are heterosexual married/partnered men). This result suggests that the sizable disparities in adult smoking rates between heterosexual and sexual minority men would have been even larger in the absence of stricter tobacco control policy. In line with previous research indicating that cigarette taxes have ‘lost their bite’, we find no significant relationship between cigarette taxes and sexual minority smoking in more recent years.

Sexual Orientation Discrimination in the Workplace

Scott Delhommer
,
University of Texas-Austin

Abstract

This paper presents the first quasi-experimental research examining the effect of both local and state anti-discrimination laws on sexual orientation on the labor supply and wages of lesbian, gay, and bisexual (LGB) workers. To do so, I use the American Community Survey data on household composition to infer sexual orientation and combine this with a unique panel dataset on local anti-discrimination laws. Using variation in law implementation across localities over time, I find that anti-discrimination laws significantly reduce gaps in labor force participation rate, employment, and the wage gap for gay men relative to straight men. These laws also significantly reduce the labor force participation rate, employment, and wage premium for lesbian women relative to straight women. One explanation for the reduced labor supply and wage premium is that lesbian couples begin to have more children in response to the laws, shifting to a more traditional household with one woman working fewer hours. Finally, I present evidence that state anti-discrimination laws significantly and persistently increased support for same-sex marriage. This research shows that anti-discrimination laws can be an effective policy tool for reducing labor market inequalities across sexual orientation and improving sentiment toward LGB Americans.
Discussant(s)
Michael Martell
,
Bard College
Cher Hsueh-Hsiang Li
,
Colorado State University
Joseph Sabia
,
San Diego State University
Christopher Scott Carpenter
,
Vanderbilt University
JEL Classifications
  • J7 - Labor Discrimination
  • J1 - Demographic Economics