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Drawing from the gender wage gap literature, we explore four possible causes of sexual minority earnings gaps: (1) variation in human capital and labor force participation, (2) occupational and industrial sorting, (3) differences in the institutional organization of the public and private sector, and (4) different returns to marriage and parenthood. Using the 2006 Census of Canada, we find that heterosexual men earn more than gay men, followed by lesbians and heterosexual women. Oaxaca-Blinder decompositions show that industry of employment, rather than occupation, disadvantages gay men, lesbians, and heterosexual women. High levels of educational attainment lead to employment in lucrative occupations, but sexual minorities earn significantly less than heterosexual men within these occupations. Wage gaps are reduced in the public sector for heterosexual women, gay men, and lesbians. Finally, we find that heterosexual women experience a motherhood penalty, heterosexual men experience a fatherhood premium, and both receive a premium for marriage; however, the presence of children and marriage have no effect on the earnings of either gay men or lesbians in conjugal relationships.
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This study presents novel evidence on the relationship between sexual orientation and self‐employment. Using data from the 2001 and 2006 Census of Canada and the 2011 Canadian National Household Survey, we explore the propensity for self‐employment among same‐ and opposite‐sex couples. We examine the demographic, human capital, and family characteristics of coupled gay men and lesbians relative to their coupled heterosexual counterparts to offer potential mechanisms generating differences in rates of self‐employment. Our analysis further considers occupational variability in the likelihood of self‐employment. We find that gay men are less likely and lesbians more likely than heterosexuals to be self‐employed; however, there is significant variation across occupations. Gay men are more likely to be self‐employed in arts and culture, sales and service, and natural and applied sciences, but less likely in business, finance, and health‐related occupations. Lesbians are much more likely to be self‐employed in health‐related occupations, natural and applied sciences, and arts and culture. Marriage and having children are significant predictors of self‐employment for coupled heterosexual women but not lesbians.
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A number of mechanisms contribute to the gender earnings gap – both its level and trends in it. We focus on three of them: occupational demand, the cumulation of disadvantage that originates in the unequal domestic division of labour, and labour market statuses which also may originate in the domestic division of labour. We show that changes in occupational demand associated with the dot-com boom and what followed it have caused substantial shifts in the relative earnings of young male and female university graduates. We provide evidence of how one consequence of the domestic division of labour – differences in hours worked by gender - contribute to the size and growth of the female earnings disadvantage. And, even in our generally young sample, human capital accumulation is more likely to be disrupted for women than for men. We identify several methodological and substantive implications of our results.
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- Journal Article (3)