Information on Costs of Discrimination against Sexual Minorities Increases Labor Market Opportunities

When people know about the economic costs of discrimination based on sexual orientation, they are more likely to accept measures that safeguard equal employment opportunities for sexual minorities. This is according to an ifo survey conducted with EconPol Europe in Serbia, Turkey, and Ukraine regarding lesbian, gay, and bisexual (LGB) individuals. “Denying LGB individuals access to their desired profession results in an overall economic cost. Information campaigns that reveal these macroeconomic costs can contribute to higher approval of antidiscrimination measures in countries with low acceptance of sexual minorities,” says ifo expert Mathias Dolls.

According to the study, discrimination against sexual minorities has a negative impact on the total number of hours worked in the economy and on productivity, among other things. It also leads to lower investment in education and inefficient distribution of labor. “It’s interesting to note that information campaigns on these costs not only increase employment opportunities for LGB individuals, but benefit other minorities, too,” says Lisa Windsteiger, coauthor of the study. “For example, they reduce reservations about employing people of other ethnic backgrounds, religious beliefs, nationalities, genders, and people with disabilities.” However, such campaigns did not increase acceptance and support of LGB people in other areas of life.

The surveys were conducted in August 2020 in three emerging markets with very low acceptance of sexual minorities: Serbia, Turkey, and Ukraine. There was a total of approximately 6,600 respondents (2,200 per country) between the ages of 18 and 70. Samples were representative at the country level in terms of age, gender, and subnational regions.