Trans people, well-being, and labor market outcomes Updated

In the EU and the US there is a growing population of trans people who start their transition in order to shape a sense of authentic identity. Greater progress in the gender transition process is related to fewer mental health problems as well as greater life and job satisfaction [1], [2], [3]. Feelings of relief and personal progress after transition are referred to by trans employees, with many utilizing expressions such as “fulfilling,” “free,” and “empowering” to evaluate their post-transition emotional condition [2], [3]. However, due to transphobia, trans people are exposed to extremely high levels of bias [4]. Trans people often feel that they are not what they say they are; they are what their identification (ID) documents at birth say they are [4]. Due to lack of acceptance, a high incidence of harassment, and significant levels of employment exclusion, trans people are more likely to be affected by worse mental health problems and poverty than the general population [1], [3].

Several problems lie in the continuing lack of information about trans issues. The public, media, policymakers, and employers lump trans issues in with sexual orientation, and this has nothing to do with gender identity. A trans person may be straight, lesbian, gay, or bisexual [1]. The experiences, the nature of the bias, and the corresponding policy actions differ between trans people and sexual orientation minoritized groups. There is a need for education on the aforementioned differences, and on the approaches required to deal with the needs of each population group. Also, the interaction between gender identity and sexual orientation and its effect on people’s lives requires additional focus and research-informed policies.

Researchers often treat trans people and gender non-conforming people as belonging in the same category. However, each category captures a different population group [1]. Gender non-conforming people are those who do not identify as either male or female all the time. And there are lots of subsections in the gender non-conforming community—people might be, for instance, gender fluid, bi-gender, or agender. Grouping all these people into a single category introduces bias. Research studies should clarify their target population, and topical questions should capture the distinction between trans and gender non-conforming people.

Furthermore, representative data sets on trans people rarely exist. The lack of representative data sets means that robust research is rarely conducted. Data sets that enable comparisons before, during, and after transitioning could shed light on the dynamics of employment rates, earnings, workplace commitments, and evaluations. In addition, comparisons between trans and cis people would enable researchers to evaluate inequality and discriminatory patterns in relation to earnings and employment outcomes.

Policymakers should consider the establishment of programs that tackle minority stress, exclusion, and discrimination [1], [12]. If people are allowed to transition and smoothly integrate into society without harassment, they might turn out better adjusted [1]. For trans people to have better access to job vacancies, to cope smoothly in employment, and to integrate into society, they should be able to change their sex on government ID documents without having to undergo sex reassignment surgery. Governments should approve legislation that would cancel the long-standing and cruel requirement that trans people provide proof of sex reassignment surgery before being able to legally change their sex [12]. In recent years, Malta, Ireland, and Norway allowed trans people to change their sex by simply notifying the authorities, without any medical or government intervention. In addition, trans and gender non-conforming people should be protected from gender identity discrimination in the labor market by the government.

Anti-discrimination legislation and inclusive workplace environments are believed to reduce trans people’s unemployment, income inequality, and poverty rates [12]. A progressive equality policy can enhance a company’s reputation and improve employees’ performance and productivity [12]. To improve employees’ work-related attitudes and experiences, firms might implement training programs that encourage individuals to be their true selves at work and simultaneously create work environments that promote greater acceptance of employees from different identity categories through awareness and inclusion initiatives [12].

Gender identity inclusion can be achieved through diversity management, training on the recruitment and retention of trans people to enable firms to secure the best possible applicants regardless of their gender identity, inclusiveness on firms’ websites and brands, a transitioning at work policy to support people intending to go through gender transition, and an official support system for employees wishing to disclose their trans status [12]. Mentoring schemes, and counselling support could positively affect trans employees’ workplace experiences [12]. Effective retention strategies addressing trans employees’ needs would avoid costs to the organization resulting from job dissatisfaction, formal complaints, resignations, and tribunals.

Firms that understand the business benefits of an inclusive workforce will recognize the need to respond to the differing requirements of all their employees [12]. Firms should make it clear that there will be no concessions for managers, colleagues, or customers who act in a biased manner, as these behaviors reflect on the company [12]. Firms should not refuse to hire and promote trans or gender non-conforming people, or refuse to step in if colleagues or customers are harassing an employee for being trans, nor should they fire trans people for being themselves. Firms should ensure that human resources departments have knowledge and awareness of trans-related issues [12]. A cooperative social dialogue between policymakers, employers, and trans employee representatives would offer opportunities to develop human resources policies at the organizational level to confront and eliminate trans bias in workplaces [1], [12].

Finally, technological advancements such as mobile health applications have been found to increase the physical and mental health status for trans people, especially during challenging periods such as during the COVID-19 pandemic [13]. One of the most notable advantages of mobile health applications are the access to healthcare services which they provide for trans people. If technological advancements can reduce physical and mental health symptoms, then their potential use for minoritized people and during periods of unprecedented stress should be considered [13]. The notion of an information society is converging with that of an inclusive society where access to, and use of, technology should be considered as a potential tool for fostering inclusive policies for minoritized peoples’ well-being [13]. Apart from technology-oriented opportunities, actions to minimize stigma and exclusions against trans people in families, schools, and services should be considered, which in turn could reduce the factors which negatively affect trans people’s development and progression in the workplace.

The author thanks two anonymous referees and the IZA World of Labor editors for many helpful suggestions on earlier drafts. Previous work of the author contains a larger number of background references for the material presented here and has been used intensively in all major parts of this article [1] and [12]. Version 2 of this article adds new arguments e.g. on earnings effects and workplace positive actions. It adds new further readings and key references [8], [9], [11], [12], and [13].