The Economics of Stigma and the Case of LGBT People

Abstract: While it is individuals who are the direct victims of social stigma and who bear the personal cost of stigma through shame, despondency and exclusion, it is entire countries that bear the economic costs of social stigma. One highly stigmatized group around the globe is lesbian, gay, bisexual and transgender people. In some cases, LGBT individuals have insufficient access to medical care and risk experiencing inappropriate care or neglect from family members who have not accepted their sexual orientation or gender identity, and these problems contribute to poor health outcomes. Poor health affects not only the well-being of LGBT individuals but also has repercussions for reduced work productivity, lower labor force participation, greater public health costs and even reduced macroeconomic growth. This presentation focuses on key determinants of these health disparities, and it presents evidence on the macroeconomic effects of more inclusive family laws and non-discrimination laws that improve the well-being of LGBT individuals.