Differences Do Not Matter: Exploring the Wage Gap for Same-Sex Behaving Men
An emerging literature provides evidence that same-sex behaving men earn significantly less than different-sex behaving men. I corroborate these existing findings and explore the source of these earnings differentials. I show that differences in worker characteristics between same-sex behaving men and different-sex behaving workers cannot explain the significant wage differential that same-sex behaving men experience. Wage differentials for same-sex behaving men are surprising because sexual orientation is not a visible trait. It seems as though same-sex behaving men might use a strategy of “passing” to avoid discrimination. I develop a model of worker-firm interaction that incorporates passing. I show the existence of an equilibrium in which wage differentials reflect a compensating differential, where same-sex behaving workers accept lower wages in exchange for being able to reveal their sexual orientation within a tolerant firm. In this equilibrium, competition will not erode earnings differentials as traditional models of discrimination suggest.
Year of publication: |
2013
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Authors: | Martell, Michael E |
Published in: |
Eastern Economic Journal. - Palgrave Macmillan, ISSN 0094-5056. - Vol. 39.2013, 1, p. 45-71
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Publisher: |
Palgrave Macmillan |
Saved in:
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