Labor market outcomes for transgendered individuals

Yes economists study this too:

We use the workplace experiences of transgender people – individuals
who change their gender typically with hormone therapy and surgery – to
provide new insights into the long-standing question of what role
gender plays in shaping workplace outcomes. Using an original survey of
male-to-female and female-to-male transgender people, we document the
earnings and employment experiences of transgender people before and
after their gender transitions. We find that while transgender people
have the same human capital after their transitions, their workplace
experiences often change radically. We estimate that average earnings
for female-to-male transgender workers increase slightly following
their gender transitions, while average earnings for male-to-female
transgender workers fall by nearly 1/3. This finding is consistent with
qualitative evidence that for many male-to-female workers, becoming a
woman often brings a loss of authority, harassment, and termination,
but that for many female-to-male workers, becoming a man often brings
an increase in respect and authority. These findings challenge the
omitted variables explanations for the gender pay gap and illustrate
the often hidden and subtle processes that produce gender inequality in
workplace outcomes.

Here is the article.  I’m not so sure this solves the identification problem, since it ends up looking at atypical individuals (those who switch to female may not be the same personality types as those who switch to male).  But, on this topic, what do I know?

I thank Zuzanna for the pointer.


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