Based on the current rate of progress, Latinas are not projected to reach equal pay with White non-Latino men for another 200 years. In other words, not until 2220, according to the latest study from the Institute for Women’s Policy Research (IWPR), today on Latina Equal Pay Day.
The day marks how far into 2020 Latinas have to work to catch up with what White nonHispanic men earned in 2019. In short, Latinas have to work for nearly 22 months to earn what White men were paid in just 12 months. In 2019, the average Latina earned just 55.4% of White non-Latino men’s earnings. That’s equivalent to $29,098 less for a year of full-time work, revealed IWPR.
This means the average Latina basically ends up losing out on more than $1 million over the course of her career. This has a huge impact on their ability to provide for their families and invest in education, property, etc. “This has serious implications for their economic security, because Latinas’ median annual earnings for full-time work leave a family with one adult and two children near poverty,” points out IWPR.
PAY GAP IMPACT
Although Latinas have made important strides in education, business and politics, with significantly increased high school graduation rates and representation in many professions over the last few years, they continue to be paid substantially less that their White non-Hispanic male peers.
Latinas have also been particularly vulnerable to unemployment caused by the pandemic because they are over-represented as frontline workers in sectors that have lost the most jobs. These include leisure and hospitality, retail and other sectors. Lower earnings mean that Latina workers and their families have fewer resources to meet the devastating impact of Covid-19. According to IWPR, the Latinx community has also been financially hit the hardest. Approximately 57% Latinx households experienced a loss of income due to the pandemic, compared to 51% Black, 51% multiracial, 46% Asian and 41% White families.
FACTORS BEHIND LATINA PAY GAP
IWPR’s attributes the huge Latina pay gap to several factors. They include:
• Occupational segregation
Latinas are more than twice as likely to work in lower-paid service occupations as White women. They are also overrepresented in jobs providing direct care or assistance to others, such as store clerks, home health aides, child care workers and domestic workers. Many of these jobs have been recognised as essential during the Covid-19 crisis, but pay much less than male-dominated jobs.
• Lack of health insurance and paid time off
The pandemic has highlighted the impossible choice low-wage workers face between their livelihood and the health of themselves and their families. With the lowest health insurance coverage rate of any racial/ethnic group and the lowest likelihood of having paid time off, Latinas are especially vulnerable to health hazards. Lack of paid time off often forces them to reduce their working hours or exit the labour market altogether.
• Lack of quality affordable child care
Latina mothers are particularly likely to leave the workforce or cutback their hours to care for their children. They are also more likely to be the family breadwinners, while holding low paying jobs and residing in child care deserts. The high price of child care leaves many Latina mothers with the choice between caring for their own children at home or continuing to bring home a pay cheque.
• Glass-ceiling and discrimination
A third of Latinx workers report experiencing hiring discrimination. For every 100 entry-level men who are promoted to managerial roles, just 68 Latinas are promoted. Discrimination and occupational segregation mean that the pay gap between Latinas and White men with a college degree is essentially the same as the one between Latinas and White men without a high school degree.
• Lack of capital for businesses
While Latinas have been launching new businesses at a very high rate (87% since 2007), they have the lowest rate of business loans from financial institutions, compared to other groups. This lack of funding impedes Latinas’ business success over time.
ACTION FOR EQUAL PAY
Latinas simply can’t wait another 200 years to reach equal pay. So what more can organisations and leaders do? IWPR believes a multi-pronged approach is needed to bridge the huge Latina pay gap. Their suggestions include:
- Improving job quality through raising the minimum wage.
- Universal access to paid time-off for medical and family care.
- Support for unionisation.
- Enforcement of non-discrimination and affirmative action policies.
- Better access to higher education and workforce development leading to well-paid jobs with benefits.
- Comprehensive investment in care infrastructure to provide affordable and quality child care and adult care for all who need it.
To combat the Latina pay gap, senior leaders must also do their part to create equitable opportunities for Latinas, as well provide equitable pay. Offering professional support at work, such as mentoring and leadership training opportunities will also go a long way to help. Click here for a copy of the IWPR report.
August 13th marked Black Women’s Equal Pay Day in the US – the date when Black women finally earn what White, non-Hispanic men made last year alone. Read more here.
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