Previous research has documented earnings differentials due to sexual orientation. In this paper we take a closer look at such differentials and the explanations for them. By studying yearly earnings as well as full-time monthly earnings, we are able to observe the extent to which the earnings disadvantage that is often observed for homosexual males and the earnings advantage often observed for homosexual females remain when we control for factors such as their number of hours worked. Our results suggest that male homosexuals are also at an earnings disadvantage compared to male heterosexuals after controlling for number of hours worked. This disadvantage is larger at the top than at the bottom of the earnings distribution. However, for females the earnings differential is considerably smaller when we study full-time monthly earnings than when we study yearly earnings. Thus, the results indicate that male homosexuals face obstacles on the labour market that hinder them from reaching top-level positions and high earnings levels; the earnings advantage often observed for homosexual females in previous research is more likely to stem from the fact that female homosexuals devote more time to market labour than heterosexual females do.