Most studies show that gay men earn less and lesbians earn more than their heterosexual counterparts, but the size of estimated sexual orientation differences varies greatly across studies. Using studies published between 1995 and 2012, a meta‐regression shows that the gay sample size, sexual orientation measure, and controls for work intensity explain variation in estimates for men. For women, there are few conclusive influences although controlling for work intensity seems to be most important.

In the last 25 years, many cities and counties, as well as a few states, have adopted policies that prohibit discrimination based on sexual orientation in private or public employment. These policies may increase earnings for gays and lesbians by decreasing discrimination in hiring, firing, promotion, or pay. This study uses data from the 1990 U.S. census to estimate the effects of these policies on individual earnings and household income. The results suggest that the policies have been adopted in places with higher earnings and that same‐sex couples are more likely to live in areas that have adopted policies. However, after controlling for individual and location characteristics, the results show no evidence of a direct effect of antidiscrimination policies on average earnings or income for members of same‐sex couples. Antidiscrimination policies may be more important both for a small number of individuals and as symbols of full citizenship and legitimacy for gays and lesbians.

This study uses the 2000 U.S. Census data to assess the impact of antidiscrimination policies for sexual orientation on earnings for gays and lesbians. Using a multilevel model allows estimation of the effects of state and local policies on earnings and of variation in the effects of sexual orientation across local labor markets. The results suggest that gay men face an earnings penalty that varies significantly (though not sizably) across local areas, and that state antidiscrimination policies may decrease that penalty in private sector employment. There is, however, no evidence that lesbians in any sector average higher earnings or wages in areas with antidiscrimination policies. The strongest evidence of effects for antidiscrimination policies is for weeks of employment and for gay men who are in the private sector, white, and in the upper half of the earnings distribution. on discrimination in labor markets. However, this paper adds to a growing literature providing a more nuanced picture of how sexual orientation affects work in America.

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