The Economic Cost of Exclusion Based on Sexual Orientation, Gender Identity and Expression, and Sex Characteristics in the Labor Market in Brazil

Overview & Synopsis

Growing evidence shows that stigma, discrimination, and social exclusion affecting lesbian, gay, bisexual, transgender, intersex, and other related identities (LGBTI+) impose significant economic costs by undermining countries’ ability to create more and better jobs. The objectives of this report are twofold. First, it seeks to estimate the economic cost associated with the exclusion of LGBTI+ people in Brazil. Second, it aims to provide policymakers, civil society actors, the private sector, and development partners with new empirical evidence to inform ongoing policy dialogue and support efforts to strengthen social and economic inclusion. To achieve these objectives, the report develops and applies two complementary theoretical models centered on labor market outcomes and fiscal impacts. The first model estimates accumulated wage losses associated with labor market exclusion. It captures three distinct but related mechanisms: (i) reduced earnings among employed LGBTI+ individuals who are unable to fully utilize their skills and qualifications; (ii) income losses associated with higher unemployment among LGBTI+ individuals actively seeking work; and (iii) forgone earnings resulting from lower labor force participation among individuals who have exited the labor market altogether. The second model estimates the fiscal implications of exclusion by quantifying losses in tax revenues and increases in public expenditures associated with these labor market distortions. Although government-sponsored surveys have measured sexual orientation and gender identity, existing data sources do not capture the full diversity of LGBTI+ identities. To address this gap, the study conducted a purposive survey of LGBTI+ people in Brazil in mid-2025, collecting information on wages, employment status, labor force participation, and self-reported experiences of workplace stigma and discrimination.