I am just catching up on this topic so will have to weigh in here with a fairly lengthy post - my apologies. I thought it was nescessary.
The MYTH of Gays having disproportionate wealth hidden away somewhere is a vicious sterotype that has no basis in reality.
The following is an excerpt from: Beyond Biased Samples: Challenging the Myths on the Economic Status of Lesbians and Gay Men
An Educational Pamphlet published by
National Organization of Gay and Lesbian Scientists and Technical Professionals, Inc. and
Institute for Gay & Lesbian Strategic Studies
Copyright March 1994
The Myths:
"'A Dream Market' ...Gay households have characteristics sought by many advertisers. Average annual [gay] household income is $55,430." --Wall Street Journal, July 18, 1991.
"Are homosexuals a "disadvantaged" minority? You decide! Records show that even now, not only are gays not economically disadvantaged, they're actually one of the most affluent groups in America!" --Literature published in 1992 by Colorado for Family Values in support of Amendment 2.
"...research showed that the gay and lesbian population ... has an average income of $36,800, compared with the average single American's income of $19,082." from Advertising Age, August 9, 1993, quoted in brochure for "Targeting Gay & Lesbian Consumers," a conference sponsored by The Marketing Institute.
The Reality:
From right-wing opponents of lesbian and gay civil rights to businesses anxious to find new groups of consumers, everybody seems to be talking about how well-off and well-educated lesbians and gay men are. Many gay people themselves point to the same numbers to illustrate our ability to function in society and as evidence of our economic clout.
But before accepting these numbers as "facts," step back and consider whether they make sense. After all, why should gay people earn more and go to school longer than the average U.S. citizen? Are gay people smarter and harder workers who deserve higher salaries? It's hard to come up with a good reason to think that sexual orientation affects talent and work motivation.
Or are gay people privileged in other ways that result in better jobs? Again, this seems unreasonable when we match that argument against evidence that lesbians and gay men face discrimination in hiring and promotions and even lose their jobs simply because of their sexual orientation.
From the perspective of statisticians and social scientists who work with statistics, however, the answer to the puzzle is easy: those numbers referred to in the opening quotes do not accurately describe the majority of lesbian and gay people in the United States. Using those numbers to describe all lesbian and gay people is misleading and, in many cases, deliberately deceptive.
Those numbers are deceptive because they come from a "biased sample" of lesbian and gay people. As the next section discusses, the people who received and answered the surveys are likely to be college-educated and have high incomes, so the results are not surprising! The third part of this pamphlet describes information about gay people which comes from more reliable surveys that aren't biased in the same way. One detailed study shows a very different pattern: lesbian, gay, and bisexual people earn less than heterosexual people.
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Where these numbers came from
The income and education figures come from two main sources. The first two quotes use survey data from the Simmons Market Research Bureau. That survey was commissioned by Rivendell Marketing Company, which used the survey results to sell advertising space in gay newspapers. The other source of information used in the quotes comes from surveys done by Overlooked Opinions, a company that sells this information. Overlooked Opinions sends surveys to people on its large list of names of lesbian and gay people across the U.S. who read gay newspapers and magazines or who have filled out questionnaires at gay events, such as gay pride festivals or the March on Washington.
To apply information about some subgroup (the "sample") to the larger group (the "population"), the sample must be "representative" of the group. A sample is representative if each member of the group has an equal chance of being in the survey.
The surveys done by Simmons and by Overlooked Opinions do not meet this requirement. Only those gay people who read certain magazines or attend certain kinds of events are even eligible to be in the surveys. People who buy and read newspapers and magazines tend to have more education and higher incomes. Gay events attract people who can afford to travel or pay an entrance fee.
(In addition, reader and event surveys typically have very low "response rate." The small percentage of readers who respond to the survey may not be representative of all survey recipients, since they may have stronger opinions on the questions asked and are more comfortable with surveys. This could mean that respondents are better educated, which would also raise the average income found in the survey.)
While that might be a reasonable way to survey readers of some newspapers, common sense tells us that we cannot use those results to describe the larger target group. For instance, readers of magazines aimed at African Americans are not economically similar to the typical African American. In 1989, the Simmons Market Research Bureau did a survey revealing that readers of Ebony, Essence, and Jet magazines earn 41% to 82% more than the typical African American (2,4).
Men Women
Ebony readers $19,983 $14,361
Essence readers $20,905 $13,894
Jet readers $17,745 $14,028
U. S. African American $12,609 $7,875
Obviously, as this comparison shows, the economic status of African American magazine readers does not mirror the economic reality for all African Americans.
Nor should we survey people who read USA Today or other newspapers with national readership to find out the average incomes of all people in the United States. As the same Simmons survey shows, people who read those newspapers earn far more than the typical American (2,4).
Men Women
USA Today readers $29,428 $17,776
Wall Street Journal rdrs $42,040 $22,846
U. S. Median $19,893 $9,624
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Representative surveys allow reasonable comparisons
Getting a representative sample of gay people in the U.S. is no simple matter. Government agencies and academic statisticians already spend a lot of time and money to get representative samples of the U.S. population. Unfortunately, few such surveys ask the right questions that would allow direct comparison of incomes between lesbian/gay people and heterosexual people. Two recent surveys come close, however, and make it possible to make better statistical comparisons.
In the 1990 Census of the U.S. population, the Census Bureau asked unmarried people whether they had an "unmarried partner", and the gender of that partner. As a result, some lesbian couples and gay male couples can be identified. Census figures suggest that men and women in homosexual couples do not earn more than men and women in heterosexual couples.
Overall, the average gay male household earned $56,863 in 1989, the average lesbian couple earned $44,793, and married heterosexual couples earned $47,012 (3). We can split those average incomes for gay male couples and lesbian couples to get the average incomes of individual gay men and lesbians. We can get rough approximations for the heterosexual couples if we note that full-time working women earn only about 2/3 as much as men. (This will actually give us an underestimate of heterosexual men's income.) Those simple calculations give us these average individual incomes:
Men Women
L/G/B $28,432 $22,397
Heterosexual $28,207 $18,805
The apparent economic advantage for gay male couples disappears when we look at individuals. The reason that heterosexual married couples and lesbian couples have lower total incomes is sex discrimination: women earn less than men, so a family with two male earners will have higher than average household incomes! The lesbian couples had the most education of the different groups, which probably explains why lesbians earn more than heterosexual women.
Of course, many different factors determine how much people get paid. The most obvious ones that economists have identified are education and age, as well as where people live and whether they face discrimination for being black or female, for instance. To really know how gay people's incomes compare to heterosexuals', we have to compare people who are similar in all of those ways.
So far, only one study of that kind has been conducted (1). That study used data from the General Social Survey, a nationally representative sample developed by the National Opinion Research Center at the University of Chicago. Questions on this survey allow the identification of people who have had sex partners of the same sex-- behaviorally lesbian, gay, or bisexual people.
In this random sample, the behaviorally l/g/b people earn less on average than behaviorally heterosexual people, even before adjusting for other differences. A standard statistical technique known as multiple regression separated out the effect of sexual orientation from the effects of other factors influencing people's incomes. (The same technique is often used to measure discrimination against African Americans or against women.)
In this case, after taking differences in education, age, and other factors into account, behaviorally gay/bisexual men earned 11% to 27% less than similar heterosexual men. Behaviorally lesbian/ bisexual women earned 5% to 14% less than similar heterosexual women, but the fairly small sample of lesbians in the group means that we might see this result just by chance. (In other words, a sample of this size might show an income difference this large even if there were no salary differences in the population.)
Since these income differences are between people who are similar in the ways that indicate how productive people are likely to be, the lower incomes for gay and bisexual people indicate discrimination.
This study, which is the most reliable evidence available now, directly contradicts the currently distorted view of the economic well-being of lesbian and gay people. That distorted view mainly results from the inappropriateness of applying results from marketing surveys to the larger group of lesbians and gay men in America.
Some gay and lesbian people are wealthy, just as some heterosexual people are wealthy. But some gay and lesbian people are poor, and most are somewhere in the middle along with the majority of heterosexual people. As the best available academic study shows, the real economic difference is more likely to come from the harmful effects of employment discrimination against lesbian, gay and bisexual people. That study confirms what other groups facing discrimination also know: discrimination doesn't just hurt psychologically--it hits people in their pocketbooks.
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The Second Article I refer people to is: The socioeconomic position of gay men; a review of the evidence American Journal of Economics and Sociology, The, Oct, 1995 by Christopher Hewitt
I
Introduction
"Gay Rights" have recently become a major issue in American society. Many argue that gays constitute a minority suffering from several types of discrimination and oppression, and in need of civil rights protection. This paper focuses on one aspect of this topic, and sets out to answer two questions. What is the socio-economic position of gay men, and to what extent is their position a result of discrimination? Since much of the literature on discrimination relates to racial minorities and women, comparisons will be made between the economic situation of these groups and that of gay men. In addition to reanalyzing material from existing studies, the paper contains original data based on obituaries published in The New York Times and The Washington Blade.
Examining gender or racial discrimination is easy, in one respect, since there is no problem determining who is a woman, nor how many women there are in the general population.(1) Classifying the population into heterosexual and homosexual men is obviously more problematic. Kinsey's contention that any individual was a mixture of homosexual and heterosexual elements, is still accepted by some writers.(2)
Most contemporary researchers distinguish between sexual orientation, sexual identity and sexual behavior, and point out that the three are not always the same. Some men whose sexual orientation is homosexual do not think of themselves as gay, and many young gays engage in heterosexual behavior due to cultural and social pressures (Saghir and Robbins, 1973, 184-204; Harry and DeVall, 1978, 74-78). On the other hand, many heterosexual men have sex with men without identifying themselves as gay, and even though they clearly prefer female partners. This situational homosexuality is linked to the unavailability of heterosexual outlets, and is found in all-male settings such as prisons (Gagnon and Simons 1973, 245-59) and among many married men (Humpreys, 1970). In this paper, gays are defined as men who have an exclusive or strong preference for male sexual partners, and who think of themselves as gay. In most national polls about 3% of males identify themselves as gay or bisexual.(3)
What is the socio-economic position of gays? Are they, like blacks, over-represented in the lower-paid and less skilled occupations? Are they, like women, concentrated in certain occupational sectors? Three types of data can be used to answer these questions: national surveys, surveys of gays and obituaries. It should be noted that the available data are somewhat limited, and all surveys are probably biased by the unwillingness of some gays to disclose their sexual identity. The effects of such bias will be discussed in a later section.
National Surveys
Two large national surveys, which break down respondents into "gays" and "straights," have been published. In 1986, The San Francisco Examiner, by random digit dialing, obtained a national sample of 400 gay men and lesbians. In 1992, The New York Times, in an exit poll of presidential voters, asked whether respondents were gay or bisexual. The Examiner survey found that gay men had a median income of $29,129 whereas non-gay male household heads had an income of $24,550. The New York Times survey, on the other hand, appears to show gays with lower incomes (Cronin, 1993). The New York Times comparison is misleading, however, because it uses "family income" although only a handful of gay men are married. If we make the reasonable assumption that "family income" and "personal income" are the same for most gay men, we can use census data to make a more valid comparison. This shows that gay men are more likely to have higher incomes than are heterosexual men.
Unfortunately the Examiner survey does not break down the occupational data by sex, and simply compares "gays" (including lesbians) to "straights." As a group, gays and lesbians are more likely to be in the labor force - a fact which is obviously linked to both age and marital status.(4) Thus, there are few gay retirees or homemakers. The most striking difference between the two groups is that gays are more likely to be self employed (18% as compared to 11%).
Table 1
Table 4
The most plausible explanation involves both factors; the psychological affinities of gay men and societal attitudes. Gay men spontaneously concentrate in those occupations, which require certain kinds of creative abilities, with their talents bringing them particular success in the arts and entertainment fields. Other professions, such as architecture and advertizing, which also value these abilities attract a higher-than-average proportion of gays. The general societal hostility to homosexuality serves to further concentrate gay men into these occupations through a snowball effect.(20) Those occupations with a high proportion of gay men will be tolerant of openly gay men. Therefore, many gay men without any particular artistic talents work in the theater or art world as managers or entrepreneurs, employing skills which could be used in other fields. Similarly, gay lawyers develop a clientele within the entertainment industry, and gay journalists cover the theater beat.(21) A desire to avoid hostility and discrimination may account for the greater than expected proportion of gays who are self-employed or work in universities.
The relative success of gays suggests that occupational discrimination against them is either mild and ineffective, or that it is counterbalanced by other factors. Gay sociologists sometimes argue that fear of discrimination, in itself, produced occupational success. Harry and DeVall (1978, 156) suggest that "to the extent that large numbers of male homosexuals, regardless of the occupation of their fathers, exclude blue-collar occupations from their job horizons, this would have an almost automatic effect of raising their actual occupational levels." Woods claims that fear of discrimination leads them to try harder - "to become the star performer, the top salesman, the award-winning agent" (1993, 209-10). One obvious retort to such arguments is to ask why these benign effects are not produced by racial and sexual discrimination. Since blue collar workers are racist as well as homophobic, why do blacks not also avoid blue collar work? Why does gender bias not inspire women to be super-achievers?
Becker's theory of racial discrimination (1976) can be adapted to model economic relations between gays and straights. Assume that in each group, a certain proportion of individuals have a preference for economic dealings with members [TABULAR DATA FOR TABLE 9 OMITTED] of their own group. The most important economic resources that affect occupational distributions and incomes are consumer purchasing power, and the power to hire, fire and promote. These resources could be distributed equally (i.e. proportionately) between straights and gays, or one group could have a disproportionate share.
Insofar as gays and straights have equally strong preferences for dealing with members of their own group, and resources are distributed proportionately, then it can be shown that discrimination will result in no change in the relative situation of the two groups. Mutual discrimination will benefit one group (and harm the other) only if one group has disproportionate resources, and/or a greater taste for discrimination.(22) Therefore, in assessing the net impact of discrimination on gays, it is necessary to take into account not only bias against gays, but also the economic resources possessed by the gay community, and gay preferences for dealing with other gays.
Certainly, being gay can be a help as well as a hindrance. Harry and DeVall (1978, 160) note that "gays often tend to hire other gays as employees, either through friendship connections or due to sympathy for gays generally." In the only survey (Bell and Weinberg, 1978, 362) which asked whether homosexuality had any career advantages, black gays reported more advantages (16%) than disadvantages (12%). White gays were more negative (28%), but a substantial minority (11%) remarked on its benefits. Woods (1993) cites instances of economic opportunities arising through homosexual contacts.(23) The disadvantages of being gay decreased, and the advantages of being gay increased throughout the 'seventies and 'eighties with the emergence of gay neighborhoods in most large cities. Lee (1979) describes how gays could live in a totally gay world. Con't
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The third source I would refer people to is : Revisiting the Income Penalty for Behaviorally Gay Men 1 Forthcoming, Labour Economics
Revisiting the Income Penalty for Behaviorally Gay Men: Evidence from NHANES III
Christopher S. Carpenter*
Assistant Professor of Economics/Public Policy
The Paul Merage School of Business, University of California at Irvine
443 GSM, Irvine, CA 92697-3125, USA
Abstract
Four studies published in the last ten years use the General Social Surveys (GSS) to show that behaviorally gay/bisexual men earn 15-30 percent less than other men. In this paper I use independent data on sexual behavior from the Third National Health and Nutrition Examination Surveys (NHANES III) and find that same-sex behaving men experience a statistically and economically significant income penalty on the order of 23-30 percent. Moreover, the strongest evidence for an income penalty is found for those
men most likely to have a gay sexual orientation based on their lifetime sexual behavior.
That the penalty for same-sex behaving men is robust across data sources suggests the need for more research into its causes and consequences.
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Studies of income dispaity from other countries show an even greater deficit in equality.
Anecdotally: I would defy someone to see, live with, work with, the half a million gay kids who live on the street in the US; who survive by selling their own bodies, by stealing, and by selling small amounts of drugs, and still quote those ridiculous miscomceptions.
"Speak the Truth, That is always much easier, and it is often the most powerfull argument." - Unknown
Thank you
Rob
[ April 04, 2006, 03:15 PM: Message edited by: ITJock ]