More Lesbians, Higher Wages? The Occupational Impact of Sexual Orientation

This paper investigates how occupational demographic composition—specifically the percentage of lesbian and straight female workers—influences average annual wages across major U.S. occupational groups from 2020 to 2023. Using data from the Occupational Employment and Wage Statistics (OEWS) program and the National Health Interview Survey (NHIS), the study applies a pooled ordinary least squares (OLS) regression model to examine the relationship between sexual orientation, gender representation, and wage outcomes. Results reveal a statistically significant positive association between lesbian representation and occupational wages, with evidence of a marginally significant interaction indicating that this effect strengthens in occupations with higher straight female representation. These findings support heterodox economic theories, including identity economics, segmented labor markets, and network effects, by demonstrating that identity-based occupational clustering plays a measurable role in wage determination. Robustness checks confirm the stability of results across model specifications, functional forms, and data subsets. The results suggest that fostering inclusive workplace environments may not only reduce inequality but also enhance economic outcomes at the occupational level.