What can life satisfaction data tell us about discrimination against sexual minorities? A structural equation model for Australia and the United Kingdom

Summary

Very little is known about how the differential treatment of sexual minorities could influence
subjective reports of overall well-being. This paper seeks to fill this gap. Data from two large
surveys that provide nationally representative samples for two different countries – Australia
(the HILDA Survey) and the UK (the UK Household Longitudinal Study) – are used to
estimate a simultaneous equations model of life satisfaction. The model allows for selfreported
sexual identity to influence a measure of life satisfaction both directly and indirectly
through seven different channels: (i) income; (ii) employment; (iii) health (iv) partner
relationships; (v) children; (vi) friendship networks; and (vii) education. Lesbian, gay and
bisexual persons are found to be significantly less satisfied with their lives than otherwise
comparable heterosexual persons. In both countries this is the result of a combination of
direct and indirect effects.