Earnings Inequality Based on Sexual Orientation

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Earnings Inequality Based onSexual Orientation

Earnings Inequality Based onSexual Orientation

Currently, there is widespreadincome inequality in not only developed countries but also inundeveloped countries among minority groups. Despite the emergencecivil rights movements and non-governmental organizations such ascharity associations to protect different such groups to counterdiscrimination culture and biases, insignificant results have beenrealized. Specifically, a non-heterosexual individual such aslesbians and gays face discrimination and earn lower salaries ascompared to heterosexual employees. Some of these biases based onsexual orientation are causing trauma to the victims who in most ofthe cases find themselves challenged by their coworkers. Studies havereviewed that there is the existence of unexplained incomediscrepancies in some companies, which consequently is likely to leadto outright remuneration among the workforce based on sex orientationand racial earnings gap. As a result, the government should implementmeasures to enhance equality in income distribution regardless of thedemographic composition of the economy. Many communities still havethe notation that, men are superior to their female counterparts,which is primitive perception.

According to Wesley (2012),discrimination studies began in 1971 when Gary Beckers published hisfirst book on the economics of discrimination whereby he highlightstaste experienced by employers, consumers and employees that have anaffinity to impose negative implication on earnings especially to theminority members of the society who includes gays and lesbians. Ifthere are non-discriminatory enterprises in the economy, most of theworkers from the minorities groups are likely to relocate to receiveequal remuneration to their heterosexual peers. On the other hand,companies which principal motive is profit maximization will haveless concern about the corporate social responsibility (CSR) henceending up imposing some discriminatory earnings clauses to lesbiansand gays workers.

According to Douglas andHeteinberger (2015), partnered gay men earn much less compared toheterosexual men. On the other hand, lesbians have high earningscapacity as compared to their male counterparts. Countries withdiscriminatory policies based on the sexual orientation seek toensure equality, provision of enabling working condition andcompetitive salaries and wages regardless of their gender and sexualorientation (Douglas&amp Steinberger, 2015).Despite these stipulations, many cases of harassments are beingexperienced in some companies. For example, in labor market, gays andlesbians are facing unfair treatment that is fueled by theirreluctant nature to disclose their dissatisfaction, their tastes, andpreference as compared to heterosexual employees ((Montag,2015)..Nowadays most studies ignore the complexity of modern society by onlyfocusing on single factor leading to the earnings disparity in theeconomy.

(Nick, 2016)

Lesbianswho are open about their sexual orientation are likely to get highremunerations. The reason being that they are more committed toworking hence in case the organizational payment policy is based onhour rate or the number of units produced, they are likely to earnmore. Despite this, more than 2.7 billion people live in countrieswhereby being gay is termed one of the serious crime. Worldwide, onlyless than 20% of the countries have adopted sexual orientationanti-discrimination policy.

Key findings




The effective interpersonal relationship between the employees and employers in the workplace increases openness on the part of lesbians and gays, which consequently cultivates positive attitudes and perceptions about their work.

The heterosexual workforce has more work satisfaction as compared to the lesbians and gays.


On average the non-lesbian women earn much compared to the lesbian labor force.

Both qualitative and qualitative studies suggest that lesbians and gays employees are likely to be harassed compared to their heterosexual counterpart.


Job satisfaction is closely linked to the number of years the employees have been open about their sexual orientation in their workplace.

Heterosexual male employees receive high payments in terms and salaries and wages compared to their gay counterparts.

Toavert gaps in payment structure that are anchored on the sexualorientation, government authorities should carry out campaigns gearedtowards ensuring equal treatment and equality in remunerationregardless of their sexual orientation of the employees. This can berealized by publishing journals annual report to encourage equalityand respect in enterprise setup (Hammarstedt,Ahmed &amp Andersson, 2015).Furthermore, organizations should be sensitized to review theirpromotional and recruitment policies thus ensuring equality inoffering opportunities to career growth and development thatconsequently results to the increment of payment package to thediscriminated workforce. Additionally, the government should createthe particular department to fight any possible cases of theharassment of the employees based on their gender orientation.

Sincethe emergence of Stonewall riots in 1969 the acceptance andvisibility of lesbian, gays, transgender and bisexual has gainedmomentum in some of the communities. The first gay and lesbiannetwork emerged in 1978, and the trend has been rising over time.Today, more than 500 Fortune companies provide both gender identityand sexual orientation protection. The rapid increase of theworkplace equality is greatly attributed to some fundamental socialand economic factors such as isomorphism (Drydakis,2015). In2012, more than 57% of the Fortune companies had adoptedanti-discrimination policies. Sometimes most of these newanti-discrimination policies are as result of mimetic influence bythe enterprises that are market leaders in the industry. Suchprecedence decision by most of the Companies can influence theadoption of these policies.

Anotherfactor that is helpful in bridging gap existing in earningsinequality based on sexual orientation is the decision by theemployees to remain closet at work to achieve the organizational goalof profit and wealth maximization. When the earnings aresignificantly highdue to benefits and allowances awarded as mostof the management team value performance above other variables. Theemployees are highly motivated to work hand, hence achieving highdeliverables. Despite this fact, most of the employees find itdifficult to disclose their personal lives. This takes a lot ofenergy to unmask such sexual orientation traits as they fear it canpose negative implications on them. Some of these challenges includefear of being challenged by their co-workers by making unnecessaryjokes and derogatorycomments.

Apartfrom having discriminatory policies some companies have gone to theextent of terminating the employees working contract on realizing anemployee is bisexual, gay or lesbian (Douglas&amp heteinberger, 2015).For instance, In 32 states of United States of America, suchpractices remain unethical and illegal to the management of allcorporations. In addition, countries such as the United States, 8.8million people representing 3.5% of adult American residents areidentified as bisexual, gays and lesbians. Most of the Americanstates have legalized the vise even they have gone to the extent ofpassing constitutional clauses, which encourages homosexuality(Nicks, 2016).Furthermore, investors such as Richard Branson have supported thevice this means that, such companies which he is principalshareholders allow equality treatment of the workforce. Many studiesand public opinion audit have identified ongoing prejudice on thepart of some employees towards gays and lesbians people. Furtherresults show that such perception and ideologies lead to thedecreased payment amongst affected individuals in the economy.

Otherstudies review that some sexual minorities have different preferencesfrom that of heterosexual co-workers. For example, such people mayhave capital accumulation motive hence less concern to bargain forhigh salaries and wages as compared to heterosexual individuals. Thiscategory of individuals is capable of organizing their lifestyle moredifferently compared to the heterosexual employees. All above factorshave a direct implication on influencing the working time, earningsand productivity of the employees. Furthermore, gays and lesbians maytend to avoid discrimination imposed on them by their peers bystriving to achieve the high level of education, residing in agay-friendly locations and seeking employment in the companies thatoffer sexual orientation anti-discriminatory policies (Marieka,2016). By choosingto lead the particular way of life that favors their lifestyles,these contributory issues pushes these people to remain contented andvalue life free from any possible cases of trauma that may arise fromthe utterance of discriminatory comments by their co-workers.

Inconclusion, it is evident that labor market outcomes and sexualorientation have blossomed over time. The gap is expected to widenwith more influx of people in the gays and lesbians groups.Furthermore, legalization of these practices is contributing to therise in the number of gays and lesbians in the economy. Lastly,lesbian ladies earns significantly higher wages and salaries ascompared to their gays counterparts. The government should take theinitiative to fight these vice and at the same time ensure companiesare encouraged to combat discriminatory practices in the workplace byensuring equality prevails in not only recruitment process but alsoin setting remuneration policies.


Douglas,J., &amp Heteinberger, M., (2015). The Sexual Orientation Wage Gapfor Racial Minorities. IndustrialRelations,54(1),59-108.

Drydakis,N. (2015). Effect of Sexual Orientation on Job Satisfaction: Evidencefrom Greece. IndustrialRelations,54(1),162-187.

Hammarstedt,M., Ahmed, A., &amp Andersson, L., (2015). Sexual Prejudice andLabor Market Outcomes for Gays and Lesbians: Evidence from Sweden.FeministEconomics,21(1),90-109.

Marieka, M.(2016).Meta-analysisof the Effects of Sexual Orientation on Earnings.

Montag,J. (2015). What Drives the Gender Gap? An Analysis Using SexualOrientation. Kyklos,68(4),577-608.

Nicks,D. (2016), Sexualorientation and labor market outcomes. Retrievedfrom.http://www.wol.iza.org/articles/sexual-orientation-and-labor-market-outcomes

Wesley, J. (2012). The extent ofincome disparities based on the intersections of race, sex, sexualorientation, and education.