Bay Area
Among Less-Educated Young Workers, Women and Black Men Are Paid Far Less
According to Byeongdon Oh, a postdoctoral researcher in the campus’ Social Sciences D-Lab, the pay disparity between Asian and white men on one side and Black men on the other may actually be worse than the data suggest. A disproportionate number of young men who did not go to college are Black. A disproportionate number of young Black men have been incarcerated, he explained, and incarcerated men were not tracked in the survey data.
By Edward Lempinen | UC Berkeley News
Less-educated U.S. workers often face a lifetime of financial challenges, but some among them are more disadvantaged than others: Young Asian and white men without college education are paid more — sometimes far more — than both Black men and women of all racial groups, according to a new study co-authored at UC Berkeley.
The study led by Byeongdon Oh, a postdoctoral researcher in the campus’ Social Sciences D-Lab, found that young Black men with no college education earn barely half of what their Asian American and white counterparts make. Latinx, Asian and Black women lag even further.
“Earnings are an important factor to study because they’re related to other outcomes, like health, engagement with the criminal justice system and family development,” Oh said. “So, we focus on the non-college population at an early age. They are already disadvantaged economically — they have very low earnings. If there’s a sizable racial or ethnic earnings disparity in this population, there may be severe consequences.”
The study, “Inequality among the Disadvantaged? Racial/Ethnic Disparities in Earnings among Young Men and Women without a College Education,” was released Dec. 21, 2022, in the journal Sociology of Race and Ethnicity, published by the American Sociological Association. It provides the first detailed look at the earnings of young adults with no college experience as their working lives take shape.
In recent years, about one-third of young Americans have stopped their education after high school. That projects to roughly 1 million less-educated young people every year entering a job market that increasingly requires advanced education and training to earn even a middle-class salary. LatinX and Black people are over-represented in this group.
To understand their experience, Oh and colleagues Daniel Mackin Freeman and Dara Shifrer from Portland State University studied data from the High School Longitudinal Study of 2009, tracing racial and ethnic earnings disparities among men and women who had never attended college. In 2016, they were in their early 20s.
“Striking” was the word the authors used to describe the earnings gaps revealed in the core data:
- Young Asian American men with no college education earned an average of $24,837 in 2016, followed by white men at $22,056 and Latinx men at $17,984. Young Black men averaged just $12,573 — barely half the wages earned by Asian Americans and whites.
- A similar, but less severe, disparity was evident among young women with no college experience. White women on average earned $14,766, followed by Latinx women at $12,465, Asian American women at $10,935 and Black women at $10,871.
- The gap between these women and men was vast, with young Black women on average earning only 44 cents for every dollar earned by Asian American men with similar levels of education.
Exploring the impact of race and gender discrimination
How to explain these racial and gender gaps in earning?
Oh said the data did not allow the researchers to determine the causes. They did find, however, that a range of possible factors — from family background and home location to high school grades and criminal records — rarely account for the earnings gaps.
But, he explained, racial discrimination in the workforce cannot be ruled out as the cause.
Oh suggested that complex social and economic factors may sort people of color into lower-paying job sectors, but the estimated earnings gaps among groups of people in the same occupation are still dramatic. These earning disparities, he said, may reflect employer bias against women and Black men.
The findings “suggest that, like their more educated counterparts, young non-college-educated women may face pernicious earnings discrimination in the labor market, regardless of their race/ethnicity,” the authors wrote.
They added: “The results may indicate that employers devalue the work of young Black men without a college education to a greater degree than they do the work of white, Latinx, and Asian men without a college education.”
According to Oh, the pay disparity between Asian and white men on one side and Black men on the other may actually be worse than the data suggest. A disproportionate number of young men who did not go to college are Black. A disproportionate number of young Black men have been incarcerated, he explained, and incarcerated men were not tracked in the survey data.
“And so, our findings on the earnings gap are conservative — it may be larger,” he said.
The new study opens up a range of new questions for Oh and other researchers. Understanding the experience of the young workers would require more targeted surveys and in-person interviews. Those would allow the researchers to understand whether discrimination is to blame, and if so, how it works, Oh said.
“I hope the contribution of our research is to make people ask why we have these striking earnings gaps,” he said. “Then, rather than wasting time blaming workers’ choices or attitudes, we might get further by identifying discriminatory labor market processes.”
Activism
Oakland Post: Week of April 24 – 30, 2024
The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024
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Alameda County
DA Pamela Price Stands by Mom Who Lost Son to Gun Violence in Oakland
Last week, The Post published a photo showing Alameda County District Attorney Pamela Price with Carol Jones, whose son, Patrick DeMarco Scott, was gunned down by an unknown assailant in 2018.
Publisher’s note: Last week, The Post published a photo showing Alameda County District Attorney Pamela Price with Carol Jones, whose son, Patrick DeMarco Scott, was gunned down by an unknown assailant in 2018. The photo was too small for readers to see where the women were and what they were doing. Here we show Price and Jones as they complete a walk in memory of Scott. For more information and to contribute, please contact Carol Jones at 510-978-5517 at morefoundation.help@gmail.com. Courtesy photo.
Bay Area
State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference
California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.
By Carla Thomas
California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco.
The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.
“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.
ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.
“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.
More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.
Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.
“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.
“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.
“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.
By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”
Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”
Cohen urged audience members to pass the initiative on the November 2024 ballot.
“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”
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