What Factors Are Driving Racial Wage Gaps?

 

Factors Driving Growing Racial Wage Gaps and Solutions to Close Them   An analysis by Gad Levanon, Vice President, Labor Markets

 

 

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Last week, Americans commemorated Juneteenth against a backdrop of renewed urgency around the nation’s racial divides. From the grassroots to the C-suite, the past decade—and the last year in particular—has seen a growing focus on the stubborn racial disparities that persist in the US economy. Yet, despite increased attention on the topic, a new report from The Conference Board finds that wage gaps have only widened between Black and White workers in recent years, even those of otherwise comparable backgrounds and qualifications. The report reveals: ·    How deeply rooted labor-market segmentation has constrained the earnings of even highly educated Black workers. ·    Why the rise of the tech industry in particular—where Black workers are especially rare—has been a key driver of racial wage gaps over the past decade. ·    The role of geographic mismatch in this tech divide. ·    How leaders in high-growth sectors can expand their access to Black talent. We encourage you to read the full report, Mind the Gap: Factors Driving Racial Wage Gaps and the Solutions to Close Them, for our exclusive data, nuanced analysis, and real world recommendations on this critical issue. We also encourage you to read The New York Times’ coverage of this important report.