Gender identity is linked to earnings gaps in Canada

{
"What the study found": "Nonbinary people and transgender people experienced earnings disparities relative to cisgender people in the 2021 Canadian census data. Nonbinary individuals assigned male at birth, transgender men, transgender women, and cisgender women all earned significantly less than comparable cisgender men, and nonbinary individuals assigned female at birth faced an additional earnings penalty.",
"Why the authors say this matters": "The authors state that this is the first evidence from a large population census on earnings disparities for nonbinary and transgender people. The findings indicate that job sorting explains some of these disparities.",
"What the researchers tested": "The researchers used restricted-access 2021 Canadian census data linked to tax records. They compared earnings across nonbinary people, transgender people, cisgender women, and cisgender men, and examined whether job sorting helped explain the differences.",
"What worked and what didn't": "The study found significant earnings gaps for nonbinary individuals assigned male at birth, transgender men, transgender women, and cisgender women relative to comparable cisgender men. It also found an additional earnings penalty for nonbinary individuals assigned female at birth, and reported that job sorting explains some of the observed disparities.",
"What to keep in mind": "The abstract does not describe other limitations. The summary provided here is limited to the census-linked earnings comparisons and the role of job sorting described in the abstract."
}

Key points

• The study analyzed restricted-access 2021 Canadian census data linked to tax records.
• Nonbinary individuals assigned male at birth, transgender men, transgender women, and cisgender women earned significantly less than comparable cisgender men.
• Nonbinary individuals assigned female at birth experienced an additional earnings penalty.
• The authors say this is the first large-population census evidence on earnings disparities for nonbinary and transgender people.
• The abstract says job sorting explains some of the observed disparities.