The economic benefits of marriage equality: Insights from a WSU study

economic benefits of marriage equality

A recent study by Washington State University highlights the significant economic benefits of marriage equality, particularly in retaining highly skilled workers and reducing emigration to the United States. The research, co-authored by WSU economists Koroles Awad and Jill McCluskey, reveals that European countries recognizing same-sex marriages saw a 21% decline in new H-1B visa applications to the U.S. from 2000 to 2019. This pattern was consistent across 13 EU countries that legalized same-sex marriage during this period, despite varying economic conditions.

What was the study?

The study focused on skilled workers from EU countries due to the region’s shared labor market, which provided a natural experiment to assess the impact of marriage equality. By 2019, around half of the 27 EU nations had legalized same-sex marriage, allowing researchers to compare the effects on migration and labor retention.

The findings indicate that marriage equality serves as a non-monetary incentive for attracting and retaining skilled workers, particularly in STEM fields. Awad notes that the U.S. and other countries compete to retain advanced degree holders, and inclusive policies like marriage equality could provide a competitive edge.

The research also examined the U.S. policy shift in 2013, which recognized foreign same-sex marriages. This change slowed the decline in H-1B visa admissions from countries with marriage equality, further supporting the economic benefits of such policies. The study suggests that both same-sex and heterosexual couples are more likely to move to areas that embrace marriage equality, as seen in U.S. internal migration patterns before the federalization of same-sex marriage.

The findings and it’s importance

The study underscores the broader economic implications of discriminatory policies, which can deter skilled workers and reduce tax revenue and spending. According to McCluskey, non-discriminatory policies enable individuals to reach their full potential, benefiting the economy as a whole. Awad adds that discriminatory policies hinder a country’s ability to sustain its comparative advantage by deterring qualified labor.

The study, titled “Marriage Equality and the Transnational Flow of Skilled Labor,” was published in AEA Papers and Proceedings.

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