Story at a glance
- A new Wells Fargo analysis found a link between LGBT communities and economic growth.
- Researchers found that the degree of “over-representation and under-representation” of LGBTQ people plays a role in state economies.
- The analysis does not state a specific reason for the connection only that the link is “remarkable.”
States with higher concentrations of people who identify as lesbian, gay, bisexual or transgender have had higher rates of economic growth, according to a Wells Fargo study.
The study, published in early June in honor of Pride Month, looked at the gross state product (GSP) of all 50 states and Washington D.C. between 2010 and 2019. Researchers then weighed that information against the LGBTQ population found in 2012.
But, the number of U.S. adults identifying as a member of the LGBTQ community has gone up since 2012. One Gallup poll found that in 2012 only 3.5 percent of the total U.S. population identified as LGBTQ, but that number has more than doubled over the past decade.
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Another Gallup poll found that 7.1 percent of adults identified as LGBTQ in 2022.
The study found that states with higher-than-average LGBTQ populations also reported higher GSPs.
Many things contribute to a state’s economic growth like unemployment rates, median wage, and corporate tax rates, the analysis admits. But the analysis notes that after controlling for these other factors, Wells Fargo still saw a positive relationship between higher LGBTQ populations and higher economic growth.
The analysis also recognized that members of the community tend to be younger and more educated than the average U.S. adult. Still, the researchers found a link between a larger LGBTQ population ratio and better economic growth.
In 2021, about 20 percent of Generation Z adults — or people born between 1997 and 2003 — identified as LGBTQ. Meanwhile, 10.5 percent of Millennials, 4.2 percent of Generation X and 2.6 percent of Baby Boomers identify as lesbian, gay, bisexual or transgender, according to Gallup.
The study does give a specific reason why a larger than average LGBTQ population appears to improve economic growth, but did call the connection “remarkable.”
“For now, we leave it to future research to determine the precise links between these two variables,” the study states.
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