A recent study conducted by Wells Fargo has shed light on an intriguing relationship between the presence of LGBTQ+ populations and economic growth in U.S. states. The study, published during Pride month, analyzed the growth rates of gross state product (GSP) across all states from 2010 to 2019, while also considering the LGBTQ+ population shares in 2012.
The findings indicate that states with a higher proportion of lesbian, gay, bisexual, and transgender citizens experienced more significant economic growth. This positive correlation held true even when considering various other factors that contribute to economic growth, such as employment growth, unemployment rates, median wages, and corporate tax rates.
The study authors were diligent in accounting for demographic variables like age and educational attainment, as LGBTQ+ individuals tend to be younger and more highly educated on average. However, the report refrained from attributing the exact cause of this relationship, leaving room for further research.
Although the study does not provide a definitive explanation, it does reference a 2016 study by StartOut, an LGBTQ+ entrepreneurial nonprofit, which found a higher percentage of entrepreneurs identifying as LGBTQ+ compared to the general population. This suggests that LGBTQ+ individuals may play a role in driving economic growth through their entrepreneurial endeavors.
Interestingly, Gallup polling indicates a notable increase in the percentage of U.S. adults identifying as LGBTQ+ since 2012. In 2022, 7.1% of adults identified as LGBTQ+, up from 3.5% in 2012. This rise across generations is likely due to increased awareness and representation, as well as evolving societal attitudes.
The Wells Fargo study’s significant findings prompt further exploration into the underlying factors influencing this connection between LGBTQ+ populations and economic growth. States aspiring to enhance their economic growth rates could benefit from delving deeper into this research and investigating how to leverage the strengths and contributions of LGBTQ+ communities.
As we celebrate Pride and the achievements of the LGBTQ+ community, this study offers a fresh perspective on the positive impact of diversity and inclusion. By embracing and supporting LGBTQ+ individuals, states may tap into their economic potential while fostering a more equitable and vibrant society for all.
Sources:
- Gilligan, C. (2023, June 13). New Study Links LGBT Populations to State Economic Growth. US News & World Report.
- O’Connell-Domenech, A. (2023, June 15). States with more LGBTQ people have better economic growth, study finds. The Hill.
- Image Credit: Photo by Hannah Voggenhuber on Unsplash