Penalizing Nonconformity: Gender Nonconformity at the Intersection of Gender and Sexual Identity in the Labor Market

Previous research has identified wage penalties for women and sexual minority workers. However, these analyses did not consider how gender nonconformity may influence our current understanding of these penalties. Therefore, this study aims to explore the wage penalty associated with gender nonconformity at the intersection of gender and sexual identity. It theorizes how gender nonconformity contributes to labor market inequality by distinguishing the impacts of gender nonconformity, gender identity, and sexual identity on wages. Using a novel measurement in the fifth wave of the National Longitudinal Study of Adolescent to Adult Health, the results indicate that heterosexual men and women experience wage penalties for being gender nonconforming compared to their conforming counterparts. Interestingly, gender nonconformity is not linked to wage penalties for gay, lesbian, and bisexual workers. These wage penalties persist even after adjusting for marital and parental statuses among nonconforming heterosexual men and women. Furthermore, nonconforming straight men earn significantly less than both conforming and nonconforming gay/bisexual men. These findings offer insights for future research to explore the labor market consequences of gender nonconformity for straight individuals, as well as gender and sexual minority workers.