Michael D. Steinberger

The Sexual Orientation Wage Gap: The Role of Occupational Sorting and Human Capital

Using data from the 2000 U.S. Census, the authors explore two alternative explanations for the sexual orientation wage gap: occupational sorting, and human capital differences. They find that lesbian women earned more than heterosexual women irrespective of marital status, while gay men earned less than their married heterosexual counterparts but more than their cohabitating heterosexual counterparts. Results of a Oaxaca-Blinder decomposition indicate that the relative wage advantages observed for some groups of lesbians and gay men were mainly owing to greater levels of human capital accumulation (particularly education), while occupational sorting had little or no influence. The relative wage penalties that were observed in other cases, however, cannot be attributed either to differences in occupational sorting or to human capital. An analysis employing a DiNardo, Fortin, and Lemieux decomposition, which allows for variation in the wage gap at different points along the wage distribution, broadly confirms these results.

LABOR SUPPLY DIFFERENCES BETWEEN MARRIED HETEROSEXUAL WOMEN AND PARTNERED LESBIANS: A SEMI-PARAMETRIC DECOMPOSITION APPROACH

Using 2000 U.S. Census data we illustrate the importance of accounting for household specialization in lesbian couples when examining labor supply differences between heterosexual married and partnered lesbian women. Specifically, we find the labor supply gap is substantially larger between married women and partnered lesbian women who specialize in market production (primary earners) than between married women and partnered lesbian women who specialize in household production (secondary earners). Applying a semi‐parametric decomposition approach we show that controlling for children significantly reduces the gap between married women and secondary lesbian earners both in terms of the decision to remain attached to the labor market (the extensive margin) and annual hours of work conditional on working (the intensive margin). Further, the effect of controlling for children primarily reduces the percentage of secondary lesbian earners working extremely high annual hours.

Female Labor Supply Differences by Sexual Orientation: A Semi-Parametric Decomposition Approach

Using 2000 U.S. Census data we illustrate the importance of accounting for household specialization in lesbian couples when examining the sexual orientation gap in female labor supply. Specifically, we find the labor supply gap is substantially larger between married women and partnered lesbian women who specialize in market production (primary earners) than between married women and partnered lesbian women who specialize in household production (secondary earners). Using a semi-parametric decomposition approach, we further show that the role of children in explaining the mean labor supply gap by sexual orientation is greatly understated if the household division of labor between household and market production is not taken into account. Finally, we illustrate that controlling for children significantly reduces differences between married women and secondary lesbian earners both in terms of the decision to remain attached to the labor market (the extensive margin), as well as in terms of annual hours of work conditional on working (the intensive margin). Further, the effect of controlling for children is not uniform across the distribution of conditional annual hours; instead it primarily reduces the percentage of secondary lesbian earners working extremely high annual hours.

Empirical Methods in the Economics of International Immigration

In this chapter we provide a brief overview of the main empirical tools used by economists to study international migration. We begin by exploring the three broad research areas that economists examine when researching immigration. We then explore the strengths and shortcomings of the standard methods, and highlight new methods that will likely become more common in future work in the field. We divide the most common tools used in the empirical literature into four broad categories: (1) Ordinary Least Squares and Inference, (2) Difference-in-Difference Estimation, (3) Instrumental Variables Techniques, and (4) Recent Developments and Distributional Estimators. We use recent empirical work to highlight and explain each method, and provide sources for researchers interested in further information on each topic.