Sexual Orientation Wage Gaps across Local Labour Market Contexts: Evidence from Canada

Abstract

This article examines sexual orientation wage gaps across local labour market contexts. Using the 2006 Canadian Census, we explore how wage gaps vary across metropolitan and non-metropolitan areas. We further evaluate whether the mechanisms contributing to wage gaps diverge across these contexts, focusing on how wage gaps differ across occupations and sectors of employment. Our results show that wage gaps are highest in non-metropolitan Canada. The underlying components of wage gaps fluctuate across Canada, especially for gay men. Sexual orientation pay gaps are reduced in public sector employment, even where private sector wage gaps are highest. These results suggest that local social and labour market contexts are associated with the earnings outcomes of sexual minorities.