Skip to main content
SpringerLink
Log in

Social Tolerance and Economic Development

  • Original Research
  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

This study empirically examines the relationship between social tolerance for homosexuality and economic development. Relevant theories support the positive effect of economic development on tolerance as well as the positive effect of tolerance on economic development. While previous studies of attitudes towards homosexuality mainly use individual-level data, we use country-level data and investigate the mutual effects of social tolerance and economic development. We use panel data regression models including pooled, fixed effects, and random effects models and the split-sample regression analysis. The empirical analysis confirms the mutual positive effects between tolerance and economic development.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Adamczyk, A., & Pitt, C. (2009). Shaping attitudes about homosexuality: The role of religion and cultural context. Social Science Research, 38(2), 338–351.

    Google Scholar 

  • Ahmed, A. M., Andersson, L., & Hammarstedt, M. (2013). Are gay men and lesbians discriminated against in the hiring process? Southern Economic Journal, 79(3), 565–585.

    Google Scholar 

  • Ahmed, A. M., & Hammarstedt, M. (2009). Detecting discrimination against homosexuals: Evidence from a field experiment on the internet. Economica, 76(303), 588–597.

    Google Scholar 

  • Ahmed, A. M., & Hammarstedt, M. (2010). Sexual orientation and earnings: A register data-based approach to identify homosexuals. Journal of Population Economics, 23(3), 835–849.

    Google Scholar 

  • Allegretto, S. A., & Arthur, M. M. (2001). An empirical analysis of homosexual/heterosexual male earnings differentials: Unmarriedand unequal? ILR Review, 54(3), 631–646.

    Google Scholar 

  • Altman, D. (2018). The term ‘LGBTI’ confuses desire, behaviour and identity – it’s time for a rethink. The Conversation. Retrieved February 21, 2019, from http://theconversation.com/the-term-lgbti-confuses-desire-behaviour-and-identity-its-time-for-a-rethink-90175.

  • Andersen, R., & Fetner, T. (2008). Economic inequality and intolerance: Attitudes toward homosexuality in 35 democracies. American Journal of Political Science, 52(4), 942–958.

    Google Scholar 

  • Antecol, H., Jong, A., & Steinberger, M. (2008). The sexual orientation wage gap: The role of occupational sorting and human capital. ILR Review, 61(4), 518–543.

    Google Scholar 

  • Arabsheibani, G. R., Marin, A., & Wadsworth, J. (2005). Gay pay in the UK. Economica, 72(286), 333–347.

    Google Scholar 

  • Arellano, M. (1987). Computing robust standard errors for within-groups estimators. Oxford Bulletin of Economics and Statistics, 49(4), 431–434.

    Google Scholar 

  • Badgett, M. V. L. (1995). The wage effects of sexual orientation discrimination. ILR Review, 48(4), 726–739.

    Google Scholar 

  • Badgett, M. V. L. (2014). The economic cost of stigma and the exclusion of LGBT people: A case study of India. Washington, DC: World Bank.

    Google Scholar 

  • Badgett, M. V. L., Durso, L. E., Kastanis, A., & Mallory, C. (2013). The business impact of LGBT-supportive workplace policies. Los Angeles: The Williams Institute.

    Google Scholar 

  • Badgett, M. V. L., Hasenbush, A., & Luhur, W. E. (2017). LGBT exclusion in indonesia and its economic effects. Los Angeles: The Williams Institute.

    Google Scholar 

  • Badgett, M. V. L., Nexhad, S., Waaldijk, K., & van der Meulen Rodgers, Y. (2014). The relationship between LGBT inclusion and economic development: An analysis of emerging economies. Los Angeles: The Williams Institute.

    Google Scholar 

  • Badgett, M. V. L., Park, A., & Flores, A. (2018). Links between economic development and new measures of LGBT inclusion. Los Angeles: The Williams Institute.

    Google Scholar 

  • Banks, C. (2004). The co\$t of homophobia: Literature review on the economic impact of homophobia on Canada. Saskatoon: Community - University Institute for Social Research.

    Google Scholar 

  • Berg, N., & Lien, D. (2002). Measuring the effect of sexual orientation on income: Evidence of discrimination. Contemporary Economic Policy, 20(4), 394–414.

    Google Scholar 

  • Berggren, N., & Elinder, M. (2012). Is tolerance good or bad for growth? Public Choice, 150(1/2), 283–308.

    Google Scholar 

  • Berggren, N., & Nilsson, T. (2013). Does economic freedom foster tolerance? Kyklos, 66(2), 177–207.

    Google Scholar 

  • Berkman, C. S., & Zinberg, G. (1997). Homophobia and heterosexism in social workers. Social Work, 42(4), 319–332.

    Google Scholar 

  • Black, D. A., Gates, G., Sanders, S. G., & Taylor, L. J. (2002). Why do gay men live in san francisco? Journal of Urban Economics, 51(1), 54–76.

    Google Scholar 

  • Black, D. A., Makar, H. R., Sanders, S. G., & Taylor, L. J. (2003). The earnings effects of sexual orientation. ILR Review, 56(3), 449–469.

    Google Scholar 

  • Black, D. A., Sanders, S. G., & Taylor, L. J. (2007). The economics of lesbian and gay families. Journal of Economic Perspectives, 21(2), 53–70.

    Google Scholar 

  • Blandford, J. M. (2003). The nexus of sexual orientation and gender in the determination of earnings. ILR Review, 56(4), 622–642.

    Google Scholar 

  • Bomhoff, E. J., & Lee, G. H. Y. (2012). Commentary to: Tolerance and economic growth revisited: A note. Public Choice, 153(3/4), 487–494.

    Google Scholar 

  • Box, L. (2015). It’s not personal, it’s just business: The economic impact of LGBT legislation. Indiana Law Review, 48(3), 995–1021.

    Google Scholar 

  • Brennan, D. J., Ross, L. E., Dobinson, C., Veldhuizen, S., & Steele, L. S. (2010). Men’s sexual orientation and health in Canada. Canadian Journal of Public Health, 101(3), 255–258.

    Google Scholar 

  • Britton, D. M. (1990). Homophobia and homosociality: An analysis of boundary maintenance. Sociological Quarterly, 31(3), 423–439.

    Google Scholar 

  • Brown, C. L. (1998). Sexual orientation and labor economics. Feminist Economics, 4(2), 89–95.

    Google Scholar 

  • Carpenter, C. S. (2008). Sexual orientation, work, and income in Canada. Canadian Journal of Economics, 41(4), 1239–1261.

    Google Scholar 

  • Chadee, D., Joseph, C., Peters, C., Sankar, V. S., Nair, N., & Philip, J. (2013). Religiosity, and attitudes towards homosexuals in a caribbean environment. Social and Economic Studies, 62(1/2), 1–28.

    Google Scholar 

  • Chen, X. (2011). Tolerance and economic performance in American metropolitan areas: An empirical investigation. Sociological Forum, 26(1), 71–97.

    Google Scholar 

  • Choi, K.-H., Paul, J., Ayala, G., Boylan, R., & Gregorich, S. (2001). Experiences of discrimination and their impact on the mental health among African American, Asian and Pacific Islander, and Latino men who have sex with men. American Journal of Public Health, 103(5), 868–874.

    Google Scholar 

  • Choi, K.-H., Paul, J., Ayala, G., Boylan, R., & Gregorich, S. (2013). Experiences of discrimination and their impact on the mental health among African American, Asian and Pacific Islander, and Latino men who have sex with men. American Journal of Public Health, 103(5), 868–874.

    Google Scholar 

  • Clain, S. H., & Leppel, K. (2001). An investigation into sexual orientation discrimination as an explanation for wage differences. Applied Economics, 33(1), 37–47.

    Google Scholar 

  • Corneo, G., & Jeanne, O. (2009). A theory of tolerance. Journal of Public Economics, 93(5–6), 691–702.

    Google Scholar 

  • Croteau, J. M. (1996). Research on the work experiences of lesbian, gay, and bisexual people: An integrative review of methodology and findings. Journal of Vocational Behavior, 48(2), 195–209.

    Google Scholar 

  • Cushing-Daniels, B., & Yeung, T.-Y. (2009). Wage penalties and sexual orientation: An update using the general social survey. Contemporary Economic Policy, 27(2), 164–175.

    Google Scholar 

  • Denny, K. (2011). Civic returns to education: Its effect on homophobia. UCD Geary Institute Discussion Paper Series.

  • Díaz, R. M., Ayala, G., Bein, E., Henne, J., & Marin, B. V. (2001). The impact of homophobia, poverty, and racism on the mental health of gay and bisexual latino men: Findings from 3 US cities. American Journal of Public Health, 91(6), 927–932.

    Google Scholar 

  • Drydakis, N. (2009). Sexual orientation discrimination in the labour market. Labour Economics, 16, 364–372.

    Google Scholar 

  • Drydakis, N. (2012). Sexual orientation and labour relations: New evidence from Athens, Greece. Applied Economics, 44, 2653–2665.

    Google Scholar 

  • Elmslie, B., & Tebaldi, E. (2007). Sexual orientation and labor market discrimination. Journal of Labor Research, 28(3), 436–453.

    Google Scholar 

  • Florida, R. L. (2002a). The economic geography of talent. Annals of the Association of American Geographers, 92(4), 743–755.

    Google Scholar 

  • Florida, R. L. (2002b). The rise of the creative class : And how it’s transforming work, leisure, community and everyday life. New York: Basic Books.

    Google Scholar 

  • Florida, R. L. (2014). The global map of homophobia. Available at http://www.citylab.com/politics/2014/02/global-map-homophobia/8309/.

  • Florida, R. L., & Mellander, C. (2010). There goes the metro: How and why bohemians, artists and gays affect regional housing values. Journal of Economic Geography, 10, 167–188.

    Google Scholar 

  • Frank, J. (2006). Gay glass ceilings. Economica, 73(291), 485–508.

    Google Scholar 

  • Fuchs, B., Sornette, D., & Thurner, S. (2014). Fractal multi-level organisation of human groups in a virtual world. Scientific Reports, 4(6526), 1–6.

    Google Scholar 

  • Griffith, K. H., & Hebl, M. R. (2002). The disclosure dilemma for gay men and lesbians: “Coming out’’ at work. Journal of Applied Psychology, 87(6), 1191–1199.

    Google Scholar 

  • Halkitis, P. N., Valera, P., & Kantzanou, M. (2018). Deterioration in social and economic conditions in Greece impact the health of LGBT populations: A call to action in the era of troika. Psychology of Sexual Orientation and Gender Diversity, 5(4), 503–507.

    Google Scholar 

  • Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251–1271.

    Google Scholar 

  • Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica, 49(6), 1377–1398.

    Google Scholar 

  • Herek, G. M. (1988). Heterosexuals’ attitudes toward lesbians and gay men: Correlates and gender differences. Journal of Sex Research, 25(4), 451–477.

    Google Scholar 

  • Herek, G. M. (2015). Beyond “homophobia’’: Thinking more clearly about stigma, prejudice, and sexual orientation. American Journal of Orthopsychiatry, 85(5), S29–S37.

    Google Scholar 

  • Hoshi, T., Kashyap, A., & Scharfstein, D. (1991). Corporate structure, liquidity, and investment: Evidence from Japanese industrial groups. Quarterly Journal of Economics, 106(1), 33–60.

    Google Scholar 

  • ILGA. (2011). Rainbow Europe country index 2011. Geneva: Gay, Bisexual, Trans and Intersex Association: The International Lesbian.

    Google Scholar 

  • Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53–74.

    Google Scholar 

  • Inglehart, R. (1981). Post-materialism in an environment of insecurity. American Political Science Review, 75(4), 880–900.

    Google Scholar 

  • Inglehart, R. (1990). Culture shift in advanced industrial society. Princeton: Princeton University Press.

    Google Scholar 

  • Inglehart, R. (1997). Modernization and postmodernization: Cultural, economic, and political change in 43 societies. Princeton: Princeton University Press.

    Google Scholar 

  • Inglehart, R. (2008). Changing values among western publics from 1970 to 2006. West European Politics, 31(1–2), 130–146.

    Google Scholar 

  • Johnson, M. E., Brems, C., & Alford-Keating, P. (1997). Personality correlates of homophobia. Journal of Homosexuality, 34(1), 57–69.

    Google Scholar 

  • Johnston, D., & Malina, M. A. (2008). Managing sexual orientation diversity: The impact on firm value. Group & Organization Management, 33(5), 602–625.

    Google Scholar 

  • Lanning, J. A. (2010). Productivity, discrimination, and lost profits during baseball’s integration. Journal of Economic History, 70(4), 964–988.

    Google Scholar 

  • Laurent, T., & Mihoubi, F. (2012). Sexual orientation and wage discrimination in France: The hidden side of the rainbow. Journal of Labor Research, 33(4), 487–527.

    Google Scholar 

  • Lee, S. (2015). Slack and innovation: Investigating the relationship in Korea. Journal of Business Research, 68(9), 1895–1905.

    Google Scholar 

  • Lewis, N. M., & Mills, S. (2016). Seeking security: Gay labour migration and uneven landscapes of work. Environment and Planning A, 48(2), 2484–2503.

    Google Scholar 

  • Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61(S1), 631–652.

    Google Scholar 

  • McDermott, E., Roen, K., & Scourfield, J. (2008). Avoiding shame: Young LGBT people, homophobia and self-destructive behaviours. Culture, Health & Sexuality, 10(8), 815–829.

    Google Scholar 

  • Mestvirishvili, M., Zurabishvili, T., Iakobidze, T., & Mestvirishvili, N. (2017). Exploring homophobia in Tbilisi, Georgia. Journal of Homosexuality, 64(9), 1253–1282.

    Google Scholar 

  • Mondak, J. J., & Sanders, M. S. (2003). Tolerance and intolerance, 1976–1998. American Journal of Political Science, 47(3), 492–502.

    Google Scholar 

  • Morgan, J. N., & Sonquist, J. A. (1963). Problems in the analysis of survey data, and a proposal. Journal of the American Statistical Association, 58(302), 415–434.

    Google Scholar 

  • Newcomb, M. E., & Mustanski, B. (2010). Internalized homophobia and internalizing mental health problems: A meta-analytic review. Clinical Psychology Review, 30, 1019–1029.

    Google Scholar 

  • Ohlander, J., Batalova, J., & Treas, J. (2005). Explaining educational influences on attitudes toward homosexual relations. Social Science Research, 34(4), 781–799.

    Google Scholar 

  • Ozeren, E. (2014). Sexual orientation discrimination in the workplace: A systematic review of literature. Procedia - Social and Behavioral Sciences, 109, 1203–1215.

    Google Scholar 

  • Persell, C. H., Green, A., & Gurevich, L. (2001). Civil society, economic distress, and social tolerance. Sociological Forum, 16(2), 203–230.

    Google Scholar 

  • Pew Research Center (2013). A survey of LGBT Americans: Attitudes, experiences and values in changing times. Available at http://www.pewsocialtrends.org/wp-content/uploads/sites/3/2013/06/SDT_LGBT-Americans_06-2013.pdf.

  • Plug, E., & Berkhout, P. (2004). Effects of sexual preferences on earnings in the Netherlands. Journal of Population Economics, 17(1), 117–131.

    Google Scholar 

  • Ragins, B. R., & Cornwell, J. M. (2001). Pink triangles: Antecedents and consequences of perceived workplace discrimination against gay and lesbian employees. Journal of Applied Psychology, 86(6), 1244–1261.

    Google Scholar 

  • Rose, L. (1994). Homophobia among doctors. BMJ: British Medical Journal, 308(6928), 586–587.

    Google Scholar 

  • Sherkat, D. E., Powell-Williams, M., Maddox, G., & de Vries, K. M. (2011). Religion, politics, and support for same-sex marriage in the United States, 1988–2008. Social Science Research, 40(1), 167–180.

    Google Scholar 

  • Smith, M. (2019). Homophobia and homonationalism: LGBTQ law reform in Canada. Social & Legal Studies. https://doi.org/10.1177/0964663918822150.

    Article  Google Scholar 

  • Stulhofer, A., & Rimac, I. (2009). Determinants of homonegativity in Europe. Journal of Sex Research, 46(1), 24–32.

    Google Scholar 

  • Sullivan, M. K. (2004). Homophobia, history, and homosexuality. Journal of Human Behavior in the Social Environment, 8(2–3), 1–13.

    Google Scholar 

  • Tschantret, J. (2019). Revolutionary homophobia: Explaining state repression against sexual minorities. British Journal of Political Science X. https://doi.org/10.1017/S0007123418000480.

    Article  Google Scholar 

  • United Nations (2015). Ending violence and discrimination against lesbian, gay, bisexual, transgender and intersex people. UN Statement.

  • van den Akker, H., van der Ploeg, R., & Scheepers, P. (2013). Disapproval of homosexuality: Comparative research on individual and national determinants of disapproval of homosexuality in 20 European countries. International Journal of Public Opinion Research, 25(1), 64–86.

    Google Scholar 

  • Wang, P., & Schwarz, J. L. (2010). Stock price reactions to GLBT nondiscrimination policies. Human Resource Management, 49(2), 195–216.

    Google Scholar 

  • Ward, J. H. (2003). Setting the diversity agenda straight. Business & Professional Ethics Journal, 22(3), 73–91.

    Google Scholar 

  • Weichselbaumer, D. (2003). Sexual orientation discrimination in hiring. Labour Economics, 10(6), 629–642.

    Google Scholar 

  • Weinberg, G. (1972). Society and the healthy homosexual. New York: St. Martin’s Press.

    Google Scholar 

  • White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48(4), 817–838.

    Google Scholar 

  • Whitehead, A. L. (2013). Religious organizations and homosexuality: The acceptance of gays and lesbians in American congregations. Review of Religious Research, 55(2), 297–317.

    Google Scholar 

  • Whitley, B. E. (2009). Religiosity and attitudes toward lesbians and gay men: A meta-analysis. International Journal for the Psychology of Religion, 19(1), 21–38.

    Google Scholar 

  • Zanakis, S. H., & Newburry, W. (2016). Global social tolerance index and multi-method country rankings sensitivity. Journal of International Business Studies, 47(4), 480–497.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Hannam University, 70 Hannamro, Daedeokgu, Daejeon, 34430, Republic of Korea

    Sanghoon Lee

Authors
  1. Sanghoon Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sanghoon Lee.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Lee, S. Social Tolerance and Economic Development. Soc Indic Res 158, 1087–1103 (2021). https://doi.org/10.1007/s11205-021-02738-z

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-021-02738-z

Keywords

Search

Navigation