How does marriage equality contribute to countries’ economic benefits? A new study suggests there are significant economic benefits, according to research by Washington State University.
The study reveals that European countries with same-sex marriage recognition retained more of their highly skilled workers and reduced emigration to the United States.
“This work is essential to show that inclusive policies have monetary and economic benefits,” said Koroles Awad from the School of Economic Sciences at Washington State University, who co-led the recent study, in an email to The Debrief.
Presently, discrimination against same-sex marriages persists in 64 countries worldwide, where it remains illegal and may lead to jail time or even death.
According to Awad, “This type of work can provide an incentive for policymakers to push for policies that are inclusive and beneficial for the economy.” Coauthored by WSU economics Professor Jill McCluskey, the researchers reported their findings in American Ecomnix Association Papers and Proceedings.
Over the past 20 years, researchers have examined H-1B visa trends, which are for skilled immigrants coming to the U.S. From 2000 to 2019, 13 EU countries made same-sex marriage legal. Interestingly, after each country took this step, the U.S. saw about a 21 percent drop in new H-1B visas from those places. This decline happened consistently, even though the timing and economic conditions varied from country to country.
The researchers zeroed in on skilled workers from EU countries because the EU is a political and economic union with a shared labor market, making it easier to see the impact of legalizing same-sex marriage. By 2019, about half of the 27 EU nations had legalized marriage equality, while the other half had not, creating a perfect setup for a natural experiment to compare the effects.
The researchers also examined the effect of the U.S. first recognizing foreign same-sex marriages in 2013. They found that the enactment of that policy slowed the decline of visa admissions from EU countries that already had marriage equality policies, including the Netherlands, Belgium, and Spain.
Their findings revealed that STEM (science, technology, engineering, and math) fieldwork was highly regarded and sought after. “Our study focuses on H1B visas, which are critical for the US to fill the gaps in the supply of STEM workers. Our analysis shows that marriage equality is a non-monetary incentive for such workers, including STEM workers, and enacting marriage equality helps attract foreign skilled workers and retain the existing skilled workers,” Awad told The Debrief.
“There is a lot of effort within the U.S. and in foreign countries to compete for these graduates and keep advanced degree holders in the country,” Awad said. “Marriage equality could be a non-monetary incentive to attract skilled workers, keep them in our economy, and keep that STEM advantage.”
It’s no surprise that the study found that both same-sex and heterosexual couples were likely to move to states that embraced and recognized same-sex marriages. These findings were based on internal United States civil migration patterns before same-sex marriage was federalized across the country.
“Our results align with previous work, which only focused on interstate migration within the US, showing that individuals and households move to areas with marriage equality,” Awad told The Debrief, adding that it “builds further and expands on the previous work by looking at international migration.”
While the study didn’t track the sexual orientation of H-1B visa holders, it was clear that recognizing marriage equality impacted where skilled workers were likely to move. Although same-sex couples often have higher education levels, the researchers suggested that the shift might also reflect that many talented individuals are attracted to places with more inclusive policies.
“In general, discriminatory policies are bad for the economy, and this is one way that shows it,” said McCluskey. “As a country, we should try to have all people be able to fulfill their potential. If we have policies that are non-discriminatory, then everyone can do better, and it will be better for the economy.”
When asked about the potential economic implications associated with discriminatory policies, Awad told The Debrief, “Skilled workers are high-income earners who pay higher taxes and spend more in the economy. Discriminatory policies can generally harm the economy by deterring skilled and qualified labor, which leads to a loss in taxes paid and spending.”
“Moreover, it makes it harder for a country to sustain its comparative advantage,” Awad added.
Awad and co-author Jill McCluskey’s recent study, “Marriage Equality and the Transnational Flow of Skilled Labor: The Impact of Same-Sex Marriage Legalization in the United States on the Inflow of Skilled Labor,” appeared in AEA Papers and Proceedings.
Chrissy Newton is a PR professional and founder of VOCAB Communications. She hosts the Rebelliously Curious podcast, which can be found on The Debrief’s YouTube Channel. Follow her on X: @ChrissyNewton and at chrissynewton.com.