Labor market disparities by sexual orientation and gender identity in Mexico

Abstract This paper studies socioeconomic disparities in Mexico based on sexual orientation and gender identity using data from a nationally representative survey collected between 2021 and 2022 (N=44,189). It finds pronounced levels of self-reported discrimination and rejection among LGBTQ+ individuals throughout their lives. It also estimates that these groups’ raw rates of labor force participation and unemployment diverge from those of their heterosexual and cisgender counterparts. Additionally, a heterogeneity analysis provides novel insights into nuanced disparities within LGBTQ+ groups.