Latina equal pay day 20181/22/2024 ![]() ![]() The economic research on Hispanic women in the labor market Ensuring this population has access to good jobs and the social safety net is critical to addressing economic inequality. As Hispanic Americans become a larger proportion of the population, their well-being affects the overall distribution of economic outcomes. economy loses out on the higher aggregate demand and productivity growth that could be realized in a more dynamic labor market powered by closing wage gaps and increasing occupational integration. When Latinas are held back from labor market opportunities, their families face worse economic outcomes, and the entire U.S. The largest explained causes of the white-men-to-Hispanic-women gap include the segregation of Hispanic women into lower-paying occupations (8 cents) and lower-paying industries (3 cents) and the disparity in access to education and skills training for many Hispanic women (6 cents). In addition to overt wage discrimination, the explained portion of the wage gap is largely caused by structural barriers that reduce Latinas’ expected earnings. We further break down this white-men-to-Hispanic-women gap into a wage premium for white men (18 percentage points, or 18 cents per dollar) and a wage penalty for Hispanic women (22 percentage points, or 22 cents per dollar). The unexplained portion, usually understood as a proxy for outright discrimination, represents by far the largest portion of the wage gap (22 cents per dollar out of a total gap of 40 cents). of Duke University in their 2018 working paper, “Returns in the labor market: A nuanced view of penalties at the intersection of race and gender.” 2 Our empirical analysis allows us to separate out the portions of Hispanic women’s wage gap that are explained and unexplained by various demographic and human capital variables. In this issue brief, we build on the work of economists Mark Paul of New College of Florida, Khaing Zaw of Duke University, Darrick Hamilton of the New School, and William Darity Jr. In addition to finding that unexplained wage gap for Hispanic women is greater than the aggregation of the absolute ethnic and gender effects, we also identify particular groups of Hispanic women at an even greater disadvantage. ![]() Census Bureau data over an 8-year period, we perform a so-called Blinder-Oaxaca decomposition-an econometric method that determines how much of mean wage differences can be explained by mean differences in human capital and other variables-to estimate the wage gap faced by Hispanic women as a whole, as well as the wage gaps faced by Hispanic women by national origin, immigration history, and education level. The intersectional wage gaps faced by Latina women in the United States 1 Empirical evidence demonstrates, however, that these dual barriers are more than the sum of their parts and could instead result in even greater economic difficulties for Latina women. labor market, including both gender discrimination and racial and ethnic discrimination. Like other women of color, Latinas face multiple structural barriers in the U.S. Today is Latina Equal Pay Day, the day in 2018 when Hispanic women in the United States have to work to earn as much as white men in the United States earned in 2017 alone. ![]()
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