The Earnings Effect of Sexual Orientation: What Still Matters

This study responds to the calls to examine the earnings effect of sexual orientation with current and detailed data (Klawitter, 2015). Using the British 2011 Workplace Employment Relations Survey (WERS), we found that gay men earn more than heterosexual men, but lesbian and bisexual men and women earn similar amounts compared to their heterosexual counterparts. When we separate the sample into married and single employees, we found that single gay men earn more than single heterosexual men. In addition, gay men working in companies with a diversity and equality management (DEM) policy earn more than their heterosexual counterparts, but earn less than those when working in companies without a DEM policy. The findings provide new evidence suggesting that neither discrimination nor household specialization is a mechanism by which sexual orientation and earnings are associated. This brings DEM policy into the spotlight as a new factor that influences the earnings of sexual minorities. These findings are valu...