Lesbian, Gay, Bisexual, and Transgender Persons and Socioeconomic Status

Evidence indicates individuals who identify as lesbian, gay, bisexual, and/or transgender (LGBTQ) are especially susceptible to socioeconomic disadvantages. Thus, SES is inherently related to the rights, quality of life, and general well-being of LGBTQ persons.

Prior research has shown that LGBTQ people and same-sex/gender couples are more vulnerable to conditions of poverty as compared to heterosexual people and couples (Badgett, Durso, & Schneebaum, 2013; Grant et al., 2011).

• Low-income LGBTQ individuals and same-sex/gender couples have been found more likely to receive cash assistance and food stamps benefits compared to heterosexual individuals or couples.
• Among women 18-44 years of age, 29 percent of bisexual women and 23 percent of lesbians are living in poverty, compared to 21 percent of their heterosexual counterparts.
• 20 percent of gay men and 25 percent of bisexual men 18-44 years of age are living at or below the federal level of poverty, compared to 15 percent of heterosexual men.
• A study of transgender adults in the United States found that participants were nearly 4 times more likely to have a household income of less than $10,000 per year compared to the general population.

Raising the federal minimum wage would benefit LGBTQ individuals and couples in the United States. Research has shown that an increase in the minimum wage would reduce the poverty rate by 25 percent for same-sex/gender female couples and 30 percent for same-sex/gender male couples. Poverty rates would be projected to fall for the most vulnerable individuals in same-sex/gender couples, including African-Americans, couples with children, people with disabilities, individuals under 24 years of age, people without high school diplomas or the equivalent, and those living in rural areas (Badgett & Schneebaum, 2014).

An individual’s socioeconomic position may also be related to experiences of discrimination. Evidence has shown that gay and bisexual men who earned higher incomes were significantly less likely to report discrimination compared to those of lower socioeconomic position. Attributing discrimination to one’s socioeconomic position was also related to higher depressive symptoms and anxiety scores (Gamarel, Reisner, Parsons, & Golub, 2012).

In many cases, discrimination against and unfair treatment of LGBTQ persons remains legally permitted. The U.S. legal system does not prohibit discrimination on the basis of sexual orientation and gender identity in several states, including workplace discrimination. Discrimination against LGBTQ persons in the workplace is a significant factor in socioeconomic differences for LGBTQ persons (McGarrity, 2014).

• Studies have shown that 42 percent to 68 percent of LGBTQ individuals report experiencing employment discrimination (Badgett, 2012; Fassinger, 2007).
• In one study, 90 percent of surveyed transgender respondents reported experiencing harassment, mistreatment or discrimination at work due to their gender identity (Grant et al., 2011).
• 47 percent of transgender individuals also reported being discriminated against in hiring, firing, and promotion; over 25 percent reported they had lost a job due to discrimination on the basis of their gender identity (Grant et al., 2011).

A lack of acceptance and fear of persecution can lead many LGBTQ youth to leave their homes and live in transitional housing or on the streets. Many LGBTQ youth may also be rejected by their family of origin or caregivers and forced to leave the home as minors. The consequences of youth homelessness have many implications for the socioeconomic status of LGBTQ youth. Studies on LGBTQ youth reveal the following:

• LGBTQ youth experience homelessness at a disproportionate rate. Studies indicate that between 11 percent and 45 percent of all homeless youth identify as LGBTQ (Durso & Gates, 2012; Gattis, 2009; Wells, 2009).
• LGBTQ homeless youth are more likely than their homeless heterosexual counterparts to have poorer mental and physical health outcomes, including major depressive disorders, PTSD and substance abuse (Keuroghlian, Shtasel, & Bassuk, 2014). Becoming homeless is also related to future depressive and anxiety symptoms, disorderly conduct and substance use disorders, which highlights the long-term impact of unstable housing on LGBTQ homeless youth (Rosario, Scrimshaw, & Hunter, 2012).
• LGBTQ homeless youth are 62 percent more likely to attempt suicide than their heterosexual counterparts, and they are at greater risk for sexual abuse, exploitation, sexual violence and drug abuse (National Alliance to End Homelessness, 2009).
• The three most common reasons cited among LGBTQ youth for becoming homeless are (a) running away from families who reject them because of their sexual orientation or gender identity; (b) being forced out of their homes after disclosing their identities; and (c) aging out of or running away from the foster care system and the possible violence toward LGBTQ youth that can occur there (Keuroghlian et al., 2014).

Although the U.S. Supreme Court ruled in 2015 that states must issue marriage licenses to same-sex couples and recognize same-sex unions that have been legally performed in other states, legal barriers continue to exist. These barriers, including workplace and housing discrimination, can result in increasing SES disparities for LGBTQ persons and families.

• Twenty states and the District of Columbia currently prohibit discrimination in the workplace based on sexual orientation and gender identity (Human Rights Campaign, 2017).
• Eighteen states have no laws prohibiting workplace discrimination against LGBTQ people (Human Rights Campaign, 2015).
• Nineteen percent of transgender individuals in one study reported having been refused a home or apartment and 11 percent reported being evicted because of their gender identity or expression (Grant, Mottet, & Tanis, 2011).

• Consider SES in your education, practice, and research efforts.
• Stay up to date on legislation and policies that explore and work to eliminate socioeconomic disparities. Visit the Office on Government Relations for more details.
• Visit APA’s Office on Socioeconomic Status (OSES) website.
• Visit APA’s Aging website.

Badgett, M. V. L. (2012). Testimony on S.811, The Employment Non-Discrimination Act of 2011. Retrieved from http://williamsinstitute.law.ucla.edu/research/workplace/testimony-s811-061212/

Badgett, M. V. L., Durso, L. E., & Schneebaum, A. (2013). New patterns of poverty in the lesbian, gay, and bisexual community. Retrieved from http://williamsinstitute.law.ucla.edu/wp-content/uploads/LGB-Poverty-Update Jun-2013.pdf

Badgett, M. V. L., & Schneebaum, A. (2014). The impact of a higher minimum wage on poverty among same-sex couples. Retrieved from http://williamsinstitute.law.ucla.edu/wp-content/uploads/min-wage-simulation-april 2014.pdf

Durso, L. E., & Gates, G. J. (2012). Serving our youth: Findings from a national survey of service providers working with lesbian, gay, bisexual, and transgender youth who are homeless or at risk of becoming homeless. Retrieved from http://williamsinstitute.law.ucla.edu/research/safe-schools-and-youth/serving-our-youth-july-2012/

Fassinger, R. (2007, September). Sexual orientation and gender identity. PowerPoint presented at the American Psychological Association Fall Board Committee Meeting, Washington, DC.

Gamarel, K. E., Reisner, S. L., Parsons, J. T., & Golub, S. A. (2012). Association between socioeconomic position discrimination and psychological distress: Findings from a community-based sample of gay and bisexual men in New York City. American Journal of Public Health, 102, 2094-2101. doi:10.2105/AJPH.2012.300668

Gattis, M. N. (2009). Psychosocial problems associated with homelessness in sexual minority youths. Journal of Human Behavior in the Social Environment, 19, 1066-1094. doi:10.1080/10911350902990478

Grant, J. M., Mottet, L. A., Tanis, J., Harrison, J., Herman, J. L., & Keisling, M. (2011). Injustice at every turn: A report of the National Transgender Discrimination Survey. Washington, DC: National Center for Transgender Equality and National Gay and Lesbian Task Force.

Human Rights Campaign. (2015, July 16). HRC hails historic EEOC ruling on employment discrimination [Press release]. Retrieved from http://www.hrc.org/press/hrc-hails-historic-eeoc-ruling-on-employment-discrimination

Human Rights Campaign. (2017). State maps of laws and policies: Employment. Retrieved from http://www.hrc.org/state-maps/employment

Keuroghlian, A. S., Shtasel, D., & Bassuk, E. L. (2014). Out on the street: A public health and policy agenda for lesbian, gay, bisexual, and transgender youth who are homeless. American Journal of Orthopsychiatry, 84, 66-72. doi:10.1037/h0098852

McGarrity, L. A. (2014). Socioeconomic status as context for minority stress and health disparities among lesbian, gay, and bisexual individuals. Psychology of Sexual Orientation and Gender Diversity, 1, 383-397. doi:10.1037/sgd0000067

National Alliance to End Homelessness. (2009). National recommended best practices for serving LGBT homeless youth. Retrieved from http://www.endhomelessness.org/library/entry/national-recommended-best-practices-for-serving-lgbt-homeless-youth

Rosario, M., Schrimshaw, E. W., & Hunter, J. (2012). Homelessness among lesbian, gay, and bisexual youth: Implications for subsequent internalizing and externalizing symptoms. Journal of Youth and Adolescence, 41, 544–560. doi:10.1007/s10964-011-9681-3

Thomeer, M. B. (2013). Sexual minority status and self-rated health: the importance of socioeconomic status, age, and sex. American Journal of Public Health, 103, 881-888. doi:10.2105/AJPH.2012.301040

Wells, K. (2009). Research exploring the health, wellness, and safety concerns of sexual minority youth. The Canadian Journal of Human Sexuality, 18(4), 221-229.