The Economic Cost of Exclusion in North Macedonia and Serbia are the first two reports in a series of studies providing new data on key labor market indicators for lesbian, gay, bisexual, transgender and intersex people (LGBTI) and their experiences of discrimination in the labor market. and exclusion, as well as an estimate of the resulting economic impact. Studies estimate that the annual economic loss due to OSIEGSB-based exclusion amounts to 0.5% of the GDP of North Macedonia and Serbia. Furthermore, the study estimates that the annual budget loss amounts to approximately 0.1% of 2021 GDP in the Republic of Serbia and 0.13% of GDP in North Macedonia.
Preview
Across the world, LGBTI people face discrimination and exclusion that can limit their ability to achieve their full potential in different areas of life, including education, employment, physical and mental health. As recent research suggests, the effects of stigma, discrimination and exclusion based on sexual orientation, gender identity and expression, and sex characteristics (SOGIESC) could cost billions of dollars to savings. However, quantifying this cost is hampered by the lack of nationally representative data on LGBTI people in most countries. Thus, the main objective of this research initiative is to provide data on the position of LGBTI people in the labor market and to estimate the economic cost of exclusion based on OSIEGSB for different countries. To estimate the cost of exclusion, two theoretical models focusing on labor market and related issues were developed. The research findings and recommendations offer evidence and guidance for advancing LGBTI inclusion and complement existing human rights discourse.
Methodology
Two theoretical models are developed to quantify the economic and fiscal losses resulting from the exclusion of LGBTI people from the labor market. The first model estimates accumulated wage losses due to the consequences of exclusion, including reduced wages due to the inability of employed LGBTI people to fully utilize their human capital, increased unemployment and wage losses associated, and reduced labor market participation or increased inactivity. of LGBTI people and the resulting loss of wages. The second model takes into account the negative effect of exclusion on accumulated tax revenues (due to lower income and wage taxes) and on expenditures (due to higher expenditures on welfare benefits). unemployment and active labor market programs).
Bearing in mind that LGBTI people’s experiences of discrimination and exclusion in the workplace are likely not uniform, which may be reflected in economic losses, self-reported experiences of discrimination and stigma in the workplace. workplace are taken into account when estimating the costs of the OSIEGSB-based exclusion.
To implement the theoretical models and avoid any factors that might affect the results, almost identical online surveys on the main labor market characteristics of the general population and the LGBTI population were conducted.