Wage Disparities and Career Trajectories of Transgender Individuals in Spain

Marta Domínguez-Folgueras, The Centre for Research on social InequalitieS (CRIS) - Sciences Po
MARIA JOSE GONZALEZ , Universitat Pompeu Fabra
Irene Lapuerta, Universidad Pública de Navarra (UPNA)
Luïze Ratniece, Universitat Pompeu Fabra

This pioneering study uses a panel event study methodology — a robust quasi-experimental approach — to examine the wage impact of gender transition among transgender individuals in Spain. Addressing critical gaps in the existing literature, which has largely relied on static, cross-sectional data, this research incorporates dynamic, longitudinal data drawn from eighteen waves of the Continuous Sample of Working Lives (MCVL). We investigate two crucial yet underexplored dimensions: the influence of the timing of transition on subsequent occupational status and earnings, and how economic trajectories differ between trans men and trans women. By providing a comprehensive comparison with cisgender control groups, our findings offer unparalleled insight into the circumstances in which gender transition influences labour market outcomes. Results reveal asymmetric economic consequences: trans women experience a persistent wage penalty of approximately 6–7% in the years following transition, whereas trans men show modest earnings gains of 4–5%. These findings highlight the enduring influence of gender norms and discrimination in shaping labour market outcomes, advancing understanding of the complex interplay between gender identity and economic inequality.

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 Presented in Session 32. Flash Session Gender, Work and Labour Market