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LGBTQ+ community: Wage gap and workplace challenges

TalentUp Team 19/06/2025

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As we reach the halfway point of Pride month, we want to dedicate this week’s insights to the LGBTQ+ community. Especially to the unspoken wage gap, as well as emphasizing the challenges and economic disparities experienced by this community in the workplace.

Salary differences between cis hetero people and LGBTQ+ (lesbian, gay, bisexual, transgender, queer, and questioning) people are complicated and can depend on many aspects, such as region, industry, education, and experience. It is important to keep in mind that these differences can not be applied to everyone in this community as a whole, because it is really varied and people’s experiences can be very different.

Discrimination

Experimental evidence of discrimination

Differences in wages in the LGBTQ+ community

Wage gap by gender. Datasource: Human Rights Campaign Foundation
Wage gap by ethnicity. Datasource: Human Rights Campaign Foundation

Occupational segregation

  • Stigma and hiding Identity. Some LGBTQ+ people may choose to hide their orientation or identity at work because of social shame and comments. This hiding can affect their job choices and chances for growth, which could lead to segregation in the workplace.
  • Education and economic factors. Differences in schooling options and economic backgrounds can also cause people in the LGBTQ+ group to work in different fields. People may not be able to get a good education due to money. Hence, they cannot go into higher-paying or usually male-dominated areas of work. According to researches conducted by Chicago University postdoctoral Marc Folch in 2018, LGBTQ+ students will choose majors with more women. Young individuals (ages 13–23) who identify as LGBTQ+ are less likely to pursue STEM careers due to worries of discrimination.
  • Social networks and homophily. This exists when people tend to hang out with people who are like them. LGBTQ+ people can use their social networks to find jobs, find teachers, and get professional help. If many people in these networks are LGBTQ+, it could mean that many LGBTQ+ people work in certain jobs.
  • Intersectionality

    Wage gap by gender and ethnicity. Datasource: Human Rights Campaign Foundation

    Mental health and well-being

    Conclusions

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