The recognition of same-sex marriage across the European Union has had a negative impact on the US economy, causing the number of highly skilled foreign workers seeking visas to drop by about 21%, according to a new study.
The list of countries that legally perform and recognize same-sex marriage now stands at 36 and continues to grow. Despite fears that same-sex marriage would undermine the institution of different-sex marriage, research has shown that, after 20 years, those fears were unfounded. Indeed, same-sex marriage has consistently been found to be positive for couples, their children, and the general population.
Now, a new study by researchers from Washington State University (WSU) has found that marriage equality also has a major economic benefit.
“This [study] just shows that having more inclusive policies can make a country more attractive for skilled labor,” said Koroles Awad, a PhD candidate in economics at WSU and the study’s lead author.
Between 2000 and 2019, 13 European Union (EU) countries legalized same-sex marriage. Analyzing data on H-1B visas – those reserved for immigrants to the US with advanced degrees and specialized skills – in the period after that, the researchers observed that there was a drop in new H-1B visas from those countries of around 21%. This was despite changes in marriage laws in the EU countries being spread over different years and under different economic conditions.
The researchers focused on the EU because it has a shared labor market, so the effect of same-sex marriage legalization can be separated. Additionally, the EU acted as a naturally occurring experiment as about half of the 27 member countries had enacted marriage equality by 2019; the other 14 countries had not, so they acted as a control group.
The researchers said foreign workers who enter the US under an H-1B visa are highly prized, especially in the science, technology, engineering, and mathematics (STEM) fields.
“There is a lot of effort within the US 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.”
The US has been dealing with the issue of ‘brain drain’ for a while. A 2022 Time article refers to Census data that reveals that immigration in the country plummeted to an all-time low of 0.1% – a relatively few 200,000 new migrants – between mid-2020 and mid-2021. The now-historic ‘War on Terror’, suspicions about Chinese espionage, financial crises, the COVID-19 pandemic, and Trump’s immigration restrictions and visa bans have all contributed to the drain. More young Americans are choosing to take up so-called ‘nomad visas’ in other countries, and international students are going elsewhere.
The present study didn’t include the sexual orientation of H-B1 visa holders, but the researchers say the effect of same-sex marriage recognition was made clear by the movement of skilled labor. Data shows that, on average, same-sex couples are more educated and more likely to work in highly skilled jobs than different-sex couples. Alternatively, the researchers say, their findings could simply indicate that highly skilled people are drawn to regions with more inclusive policies.
“In general, discriminatory policies are bad for the economy, and this is one way that shows it,” said Jill McCluskey, a WSU economics professor and the study’s co-author. “As a country, we should try to have all the 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 country.”
The study was published in the journal AEA Papers and Proceedings.
Source: WSU
