Wealth, gender and sexual orientation—evidence from siblings

Abstract

Abstract Using Swedish administrative data, this study investigates the link between wealth and sexual orientation across genders, focusing on nearly 4400 individuals who have ever been in a same-sex legal union and their siblings who had been exclusively in different-sex relationships. Employing unconditional quantile regressions and sibling fixed effects, we show that the wealth gap by gender and sexual orientation varies across the wealth distribution. Men in same-sex couples (SSCs) experience a wealth penalty below the 70th percentile but a premium above it. For women, the wealth penalty persists until the 95th percentile. Similar patterns hold for the wealth subcomponents, with men in SSCs holding more financial resources, real estate and debt at the top of the distributions, while women in SSCs hold more financial resources but less real estate and total debt. Additional analysis highlights the positive marginal effects of urban residency and years of schooling on these patterns.