Sexual Orientation and Earnings in Sweden

Abstract

This paper presents a study of earnings differentials between homosexual individuals who are living in civil unions and married heterosexual individuals based on register data from Sweden. The results show that gay men are at an earnings disadvantage as compared to male heterosexuals. This earnings differential amounts to between 10 and 15 per cent. The earnings differential is smaller in metropolitan areas compared to nonmetropolitan areas. Regarding females, the results show that the earnings differential between lesbians and heterosexual women is very small. The existence of different kinds of discrimination as well as the fact that families specialize in market and household labour within households are put forward as plausible explanations for the results.