Sexual orientation and earnings: a register data-based approach to identify homosexuals

This paper examines earnings differentials between homo- and heterosexual individuals by identifying sexual orientation with the help of information from register data. Register data enable us to avoid the misclassifications of sexual orientation often mentioned as a potential bias in survey-based studies. The results show that gay men are at an earnings disadvantage as compared to male heterosexuals while the earnings differential between lesbians and heterosexual women is very small. Our results are in line with results from previous research but are more reliable since we use a more reliable measure of sexual orientation than previous research.