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56 Indus. & Lab. Rel. Rev. 449 (2002-2003)
The Earnings Effect of Sexual Orientation

handle is hein.journals/ialrr56 and id is 451 raw text is: THE EARNINGS EFFECTS OF SEXUAL ORIENTATION
DAN A. BLACK, HODA R. MAKAR, SETH G. SANDERS, and LOWELLJ. TAYLOR*
This investigation of the effect of sexual orientation on earnings employs
General Social Survey data from 1989-96. Depending largely on the definition
of sexual orientation used, earnings are estimated as having been between 14%
and 16% lower for gay men than for heterosexual men, and between 20% and
34% higher for lesbian women than for heterosexual women. This evidence, the
authors suggest, is consistent with either of two complementary constructions:
Gary Becker's argument that male/female earnings differentials are rooted in
specialization within households and in optimal human capital accumulation
decisions individuals make when they are young; and Claudia Goldin's observa-
tions about marriage-based gender discrimination, according to which the
paternalistic protection of wives and mothers from the world of work has
tended to overlook lesbians.

T he past decade has been marked by a
significant amount of public policy
debate and legislation regarding gay and
lesbian Americans. For example, initia-
tives designed to prohibit discrimination
or, conversely, to prohibit civil rights pro-
tection based on sexual orientation have
been debated at virtually all levels of gov-
ernment. For the most part, public dis-
*Dan Black is Professor of Economics at Syracuse
University, Hoda Makar contributed to this paper
while she was completing an M.A. in Sociology at the
University of Chicago, Seth Sanders is Associate Pro-
fessor of Economics at the University of Maryland,
and Lowell Taylor is Professor of Economics at the
Heinz School, Carnegie Mellon University. The au-
thors gratefully acknowledge research support from
NICHD Grant HD3703-01 430. They thank partici-
pants at the 1999 Conference on the Economics of
Sex Roles and the Family at the University of Texas at
Austin for helpful comments on earlier drafts of this
paper.
Programs used to generate key results are avail-
able from Professor Black, Center for Policy Research,
426 Eggers Hall, Syracuse University, Syracuse, NY
13244-1020.

course on these issues has not been in-
formed or supported by empirical work
that uses probability samples.
The problem for social scientists seeking
to understand issues related to sexual ori-
entation is that much of the research in the
study of gays and lesbians is conducted
using small convenience samples. These
samples are often drawn from readers of
particular magazines or newspapers, or re-
sponses solicited from Internet sites or in
gay bars. Often these samples do not in-
clude comparison groups of heterosexual
individuals.' The problem, of course, has
been the absence of large systematic data
sets that include information on sexual
orientation.
1Blumstein and Schwartz's (1983) landmark work,
American Couples, while not employing a random
sample (the sample consisted of volunteers recruited
in various ways), was based on data collected from
comparable heterosexual and homosexual couples
using the same instruments. It represented an impor-
tant advance in the study of gays and lesbians.

Industrial and Labor Relations Review, Vol. 56, No. 3 (April 2003). © by Cornell University.
0019-7939/00/5603 $01.00

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