Study More, Grant More Benefits? the Intersection of Partnership and Educational Attainment in LGB Economic Outcomes

Despite achieving higher educational levels, LGB individuals often face significant earnings penalties. They are also less likely to have a partner, which is relevant as partnership status has been shown to moderate LGB people’s earning outcomes. This study integrates literature on the LGB educational premium and earnings penalties to examine how sexual identity, education, partnership, and earnings interact, revealing a complex dynamic.

Using data from the UK Household Longitudinal Study (UKHLS), this study employs matching techniques with stratified samples and panel regression techniques. The analyses serve two main purposes: validating prior research on partnerships and earnings differences, and contributing to the literature by investigating how partnership moderates the relationship between education and earnings for LGB individuals.

The results show that LGB men are less likely to have a partner and transition to their first cohabiting partner, and they also face earnings penalties compared to heterosexual men, while findings for LGB women show mixed evidence. Further results reveal that the impact of sexual identity on earnings is not homogenous but varies by partnership and educational level. For instance, highly educated gay men do not experience significant earnings penalties, while a significant penalty is found among low-educated, non-partnered gay men. Similarly, having a partner is particularly beneficial for low-educated lesbian women, who tend to earn more than their heterosexual counterparts.

These findings illustrate the complex interplay between education, sexual orientation, partnership, and socioeconomic outcomes. While higher education protects LGB individuals from earnings penalties, it does not mitigate their lower likelihood of having a partner. Partnership, however, acts as a critical buffer against earnings penalties for low-educated LGB individuals.

These insights contribute to a more nuanced understanding of how educational advantages may be transmitted and how they may interact with partnership status and affect economic outcomes for LGB individuals.