Disclosure of sexual orientation in the USA and its consequences in the workplace

Abstract

Purpose Discrimination and hostility in the workplace prevents homosexual workers from performing their core functions on the job. Moreover, it introduces unnecessary costs by increasing absenteeism, lowering productivity, and fostering a less motivated, less entrepreneurial, and less committed workforce. By means of an agent-based model, the authors simulated the effects on unemployment rates of an increasing of sexual orientation (SO) disclosure in the workplaces. The authors tested the effects on workers’ utility, level of job satisfaction and segregation. The results show a complessive improvement of the firms’ performances and a better job satisfaction for undeclared and homosexual workers and employers. With a homosexual employer, the authors can observe an increasing homosexual utility and firm profit, with a low decrease in undeclared utility. Instead, with an undeclared employer, the firm’s profit decreases but the total effect is positive. The paper aims to discuss these issues. Design/methodology/approach An agent-based model applied. Findings Effects of sexual disclosure on unemployment rates, job satisfaction, and job segregation. Originality/value The economic literature on SO and job satisfaction is very meager.