Today, on 8 December, the US observed Latina Equal Pay Day. Latina Women’s Equal Pay Day is an important reminder of the systemic economic disparities that women of colour experience.
Latinas, on average, make 54 cents to every $1 made by white non-Hispanic men – a gap that is actually increasing. According to the Department of Labor, Hispanic women experience the largest wage gap of any major racial or ethnic group. These women have also experienced one of the slowest growth rates compared to White men, with only a 4% change in earning ratio from 1988 to 2019.
If this rate of change continues to stagnate, Latina women can expect to achieve equal pay in the year 2197, shared National Organization for Women (NOW)’s President Christian F Nunes.
DEVASTATING CONSEQUENCES OF PAY GAP
Jasmine Tucker, Director of Research at the National Women’s Law Center, said that the fact it takes this long for Latinas to catch up is “devastating”. In fact, Latinas lose nearly $1.2m to the sexist and racist wage gap, pointed out Tucker. “While Latinas play a critical role in the workforce, they are often paid less than their peers. In 2021, the most recent data available, Latinas, working full time, year round were typically paid just 57 cents for every dollar paid to white, non-Hispanic men. This gap in pay typically amounts to a loss of $2,477 every month, $29,724 every year, and $1,188,960 over a 40-year career.”
As bad as these losses are, the wage gap for full-time, year-round workers doesn’t fully reflect the economic disparities faced by Latinas. “The full-time, year-round wage gap leaves out those Latinas who were unemployed or out of the labour force for part of 2021, or who worked part time, even if they wanted full-time work. This is especially significant given that the labour market shifted dramatically in 2020 as a result of the pandemic and its effects continued in 2021,” explained Tucker.
“Millions of jobs were lost, particularly among women working in low-paid jobs, while other women were forced into part-time work as they lost access to full-time work or needed to adjust their schedules to care for children or other loved ones. When part-time and part-year workers are included in the comparison, Latinas were typically paid only 54 cents for every dollar paid to White, non-Hispanic men in 2021,” noted Tucker.
PAY GAP LOSSES & POVERTY
Another problem is that despite high participation in the workforce, Latinas are still overrepresented in low-wage jobs. According to Department of Labor almost 1 in 10 (9 percent) Latinas working 27 hours or more a week are living below the poverty line, and they are underrepresented in leadership roles in higher-paying jobs.
“Unequal pay means Latinas have less money to cover their current expenses at a moment when every penny counts. It also has ripple effects that mean Latinas miss key opportunities throughout their lifetimes to build wealth and future economic security for themselves and their families. The wage gap means many cannot save enough to afford a down payment on a home, cannot afford to pay for their own or a child’s higher education, cannot start a business or save for retirement,” added Tucker. “Losses due to gender and racial wage gaps are devastating for Latinas and their families, many of whom lose tens of thousands of dollars annually to the wage gap. This harms not only Latinas, but the families who depend on their income. Latinas have been short-changed and their work has been undervalued for far too long. Neither they nor their families can afford to wait for change. “
TIME FOR FAIR PAY
NOW’s Nunes agreed: “The pay gap harms Latinas, their families, futures and their entire country. Latinas can’t wait to be paid equally, and they shouldn’t have to wait. They must be paid fully and fairly NOW. We cannot allow pervasive and blatant discrimination to continue to hold Latina women back. By ignoring this widening gap, the US is being cheated out of the tremendous economic growth driven by these women. We must advocate for policies that ensure Latina women have access to the resources they need to support themselves, their families, and their communities now and in the future through financial security.”
According to Nunes equal pay “isn’t just the right thing to do, it’s the best investment we can make”. Raising awareness nationwide about the gap and its devasting consequences is also vital. Nearly one in three Americans are not aware of the pay gap between Latinas and white men, highlighted the Association of Latino Professionals For America (ALPFA). “It’s about bringing visibility to the Latina wage gap and, most importantly, systemic solutions. The time is Now! Ahora!” commented ALPFA.
HOW TO CLOSE THE PAY GAP
US organisation LeanIn offers the following advice on what companies can do to close the gap for Latinas:
- 1. If hiring and promotions are fair, Latinas are more likely to be paid on a par with other groups at their company. So make hiring and promotions fair.
- 2. Awareness is the first step to solving a problem. So put processes in place to ensure that employees doing the same work are being paid the same.
- 3. Unconscious bias can play a large role in determining who is hired and promoted, which impacts what they are paid. So train employees to identify and challenge bias.
- 4. Latinas are asking for raises as often as white men—but they get different results because of bias. Make it a norm for women to negotiate
- 5. It’s critical that Latinas get the experience they need to be ready for management roles, as well as opportunities to raise their profile so they get tapped for them. So provide Latinas with equal support and opportunity for advancement.
Click here for more information.
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