As shocking as it is, the gender wage gap actually widens when we add race and ethnicity to the picture. For example, African American women make on average 64 cents for every dollar a Caucasian male makes. Latina women make 56 cents, or 44 percent less, for every dollar a Caucasian male makes. African American and Latino men also make notably less than Caucasian men. Asian Americans tend to be the only minority that earns as much as or more than Caucasian men.[4]
This discrimination is also evidenced by the fact that blacks and Latinos get fewer callbacks for job interviews and have fewer job opportunities, when compared with whites. In a meta-analysis of research conducted since 1990, sociologists found that white applicants with identical résumés as black applicants consistently received an average of 36% more callbacks than black applicants. This number remained essentially unchanged in 25 years, between 1990 and 2015. White applicants also received 24% more callbacks than Latino applicants, and this number has improved slightly over the same time period.[5]
The black unemployment rate is essentially double that of whites. Data from the third quarter of 2018 revealed the black unemployment rate to be about 6.3 percent, while the white unemployment was at 3.2 percent. Hispanic unemployment was also higher than whites, at 4.5%, whereas Asian workers had a slightly lower rate, at 3.0%.[6]
WATCH IT
Watch this video as Harvard sociologist William Julius Wilson explains how finding a job can be extremely complicated for those in poor or minority neighborhoods.
https://youtu.be/deI1sq17VTI
Immigration and the Workforce
Figure 5. 14.7 Million immigrants in the United States have postsecondary degrees. From https://www.pewresearch.org/fact-tank/2019/02/01/4-paths-highly-educated-immigrants-take-to-study-and-work-in-the-u-s/
Simply put, people will move from where there are few or no jobs to places where there are jobs, unless something prevents them from doing so. The process of moving to a country is called immigration. Due to its reputation as the land of opportunity, the United States has long been the destination of all skill levels of workers. While the rate decreased somewhat during the economic slowdown of 2008, immigrants, both legal and illegal, continue to be a major part of the U.S. workforce.
In 2005, before the recession arrived, immigrants made up a historic high of 14.7 percent of the workforce (Lowell et al. 2006). During the 1970s through 2000s, the United States experienced both an increase in college-educated immigrants and in immigrants who lacked a high school diploma. With this range across the spectrum, immigrants are well positioned for both the higher-paid jobs and the low-wage low-skill jobs that are predicted to grow in the next decade (Lowell et al. 2006).
A 2016 survey revealed that foreign-born full-time workers had a median salary at 83.1% of the median earnings for native-born workers ($715 compared to $860); foreign born men earned 79% of the median earnings of native-born men, while foreign-born women earned 86% of their native-born counterparts.[7]
In the early 2000s, it certainly seemed that the United States was continuing to live up to its reputation of opportunity. But what about during the recession of 2008, when so many jobs were lost and unemployment hovered close to 10 percent? How did immigrant workers fare then? The answer is that as of June 2009, when the National Bureau of Economic Research (NEBR) declared the recession officially over, “foreign-born workers gained 656,000 jobs while native-born workers lost 1.2 million jobs” (Kochhar 2010). As these numbers suggest, the unemployment rate that year decreased for immigrant workers and increased for native workers. The reasons for this trend are not entirely clear. Some Pew research suggests immigrants tend to have greater flexibility to move from job to job and that the immigrant population may have been early victims of the recession, and thus were quicker to rebound (Kochhar 2010). Regardless of the reasons, the 2009 job gains are far from enough to keep them inured from the country’s economic woes. As Brookings Senior Fellow Vanda Felbab-Brown explains “the impact of immigrant labor on the wages of native-born workers is low… However, undocumented workers often work the unpleasant, back-breaking jobs that native-born workers are not willing to do.”[8]
While the political debate is often fueled by conversations about low-wage-earning immigrants, there are actually as many highly skilled––and high-earning––immigrant workers as well. Many immigrants are sponsored by their employers who claim they possess talents, education, and training that are in short supply in the U.S. These sponsored immigrants account for 15 percent of all legal immigrants (Batalova and Terrazas 2010). Interestingly, the U.S. population generally supports these high-level workers, believing they will help lead to economic growth and not be a drain on government services (Hainmueller and Hiscox 2010). On the other hand, illegal immigrants tend to be trapped in extremely low-paying jobs in agriculture, service, and construction with few ways to improve their situation without risking exposure and deportation.
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