LOS ANGELES A new research study released today by The Williams Institute on Sexual Orientation and Gender Identity Law and Public Policy shows that employment discrimination against transgender residents of Massachusetts likely costs the Commonwealth millions of dollars each year. These costs are the result of reduced income tax revenue, expenditures on public assistance programs, and other costs. The added cost to the Commonwealth for public health insurance coverage alone is $3 million annually due to employment discrimination against transgender workers.
"When transgender people experience employment discrimination, not only can that have a substantial negative impact on people's lives, but it also affects the Commonwealth financially so all Massachusetts residents pay a price," said study author Jody L. Herman, the Peter J. Cooper Public Policy Fellow at the Williams Institute.
In calculating the cost to the Commonwealth, the study estimates that 6,600 Massachusetts residents have lost a job, 12,900 were not hired for a job, and 5,600 were denied a promotion, all due to due to anti-transgender bias. Furthermore, 15 percent of surveyed transgender Massachusetts residents made $10,000 or less in annual household income, whereas only 3 percent of the Massachusetts general population made this amount.
Employment discrimination can lead to lost wages and the need to access public assistance programs to replace lost income and health insurance coverage. This study estimates that the Commonwealth may be losing millions in income tax revenues each year due to employment discrimination. In addition, the Commonwealth is spending nearly $3 million every year in public health insurance coverage for those who have lost jobs due to anti-transgender bias.
Herman continued: "Clearly there is a need for more study of these issues. The Commonwealth pays the price when the fiscal ripple effect of employment discrimination is closely examined. In addition to public assistance and health insurance costs, housing instability and the need to access Commonwealth-funded job training and placement programs should also be considered for further study."
The Williams Institute on Sexual Orientation and Gender Identity Law and Public Policy advances law and public policy through rigorous, independent research and scholarship, and disseminates its work through a variety of education programs and media to judges, legislators, lawyers, other policymakers and the public. This study can be accessed at the Williams Institute website, www.law.ucla.edu/williamsinstitute.