Early Labor Market Outcomes of Young Adults From Same‐Sex Families: Evidence From Population Data

ABSTRACT Objective This study offers the first population‐based evidence on how young adults from same‐sex families fare when entering the labor market shortly after leaving full‐time education. Background Same‐sex couples' parenting rights remain controversial in many countries. Although most studies suggest that children from same‐sex families perform at least as well as children from different‐sex families in childhood or adolescence, data limitations have prevented investigation of how children from same‐sex families perform in adulthood. Method Using Dutch longitudinal tax registers, we observe 381,131 young adults who are no longer in education at age 25, of which 760 are from same‐sex families. We use linear regression models to compare young adults from same‐sex and different‐sex families on a range of early labor market outcomes (annual earnings, hourly earnings, employment, full‐time employment). Results Young adults who lived in a same‐sex family earn just as much, are equally employed, and have equal probability of being full‐time employed as young adults from different‐sex families. Moreover, especially young adults raised by same‐sex parents from birth more often choose industries dominated by the opposite sex. Nonetheless, such choices are not reflected in earnings differentials. Conclusion These findings suggest that children of same‐sex parents do well on the labor market, and are less inclined to follow traditional gender norms when choosing occupations.