LGBTQ+ individuals in the Mexican labor market: Queerphobia, sorting, and observable outcomes

Understanding the relationship between LGBTQ$+$ identities and labor market outcomes is crucial for designing effective policies. We explore this understudied topic using rich data from the first national survey on sexual orientation and gender identity in Mexico. We find that employment rates among LGBTQ$+$ minorities are generally lower than those of cisgender heterosexual men. We link labor market outcomes to prejudice by documenting occupational sorting: minorities are over-represented in sectors with lower stigma. Additionally, while most LGBTQ$+$ identities are more likely to hold leadership positions than cisgender heterosexual men, they are also more likely to report workplace victimization and exclusion. We exercise caution in interpreting these gaps due to evidence of endogenous selection into occupations.