Gender, sexual orientation and the pay gap: an analysis in light of homophobia and gender stereotypes

Purpose Previous research has measured wage inequalities based on gender and sexual orientation. However, although sexism and homophobia form the backdrop of these studies, no research has measured the role played by gender stereotypes and homophobia on the national level in these wage disparities. Most studies have been conducted in single countries, which prevents researchers from considering the effects of national values (such as gender stereotypes and homophobia) on wages. This article aims to bridge these gaps by studying wage differentials according to gender and sexual orientation across 25 European countries characterised by various levels of homophobia and gender stereotypes. Design/methodology/approach This study uses two data sources, namely the EWCS and EVS surveys, to measure wage inequalities according to gender and sexual orientation in European countries characterised by different levels of gender stereotypes and homophobia. The analysis is mostly based on multilevel modelling. Findings Our findings shows that in Europe, among partnered individuals, after controlling for individual variables, lesbian women earn more than heterosexual women but less than gay men who themselves receive less salary than heterosexual men. The gender pay gap is lower among lesbians and gays than among heterosexual individuals. Once national variables are added with interaction effects with sexual orientation, lesbian women seem to be the category for whom the wage increases related to living in non-homophobic countries are the highest. Originality/value This article is the first to measure the role played by national gender ideology and homophobia in wage inequalities according to gender and sexual orientation.