Sexual Orientation, Disclosure and Earnings

20 Pages Posted: 23 May 2008

See all articles by Erik Plug

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute; IZA Institute of Labor Economics

Peter H. G. Berkhout

University of Amsterdam - SEO Economic Research

Abstract

Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men.

Keywords: sexual orientation, disclosure, earnings, discrimination, selection

JEL Classification: J15, J24, J71

Suggested Citation

Plug, Erik and Berkhout, Peter H. G., Sexual Orientation, Disclosure and Earnings. IZA Working Paper No. 3290, Available at SSRN: https://ssrn.com/abstract=1136452 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Erik Plug (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
1018 WB Amsterdam
Netherlands
+31 20 5254311 (Phone)
+31 20 5254310 (Fax)

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Peter H. G. Berkhout

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

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