Abstract
This paper assesses labor market disparities against sexual minorities. My empirical strategy allows schooling, employment, and income to be endogenously determined relying on the identification of unobserved heterogeneity (skills and sexual orientation). I find that disparities are more prevalent at the employment margin than at the earnings margin. Sexual minorities are 10–20 percentage points less likely to be employed than comparable heterosexual adults. The results suggest that selection into employment contributes to the elimination of the observed income gaps among the employed as the average sexual-minority worker is more skilled than their heterosexual counterpart.
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