The Racial Wage Gap: Why It Persists Among Young Workers
The racial wage gap between Black and white workers still exists, although it is slowly narrowing. According to the Department of Labor, Black people earn 76 cents for every dollar earned by white people nationwide.
This disparity starts early in a person’s career. In the fourth quarter of 2023, the Bureau of Labor Statistics reported that full-time wage and salaried white workers aged 16 to 24 earned a median weekly income of $747. In contrast, Black or African American workers in the same age group earned a median weekly income of $614. While this wage gap is smaller than the national average, it still amounts to about 82 cents for every dollar earned by white workers.
Many young workers in this age group are just starting their careers and have limited work experience. So, what factors contribute to this pay disparity? Experts have identified several key reasons:
1. Family Background and Opportunities
Job opportunities for young people are often influenced by their family situation. Children born into higher-income families have better access to opportunities presented by their parents. For example, a child whose parents work in high-paying fields like law or advertising may have more internship or administrative positions available to them. In contrast, a child whose parents work in lower-paying jobs, such as the postal service or local transit system, may have fewer opportunities.
Black individuals are statistically overrepresented in lower-paying fields. For instance, they make up a significant percentage of postal service clerks and bus drivers. In contrast, they are underrepresented in higher-paying fields like computer science and law.
2. Limited Access to Transportation
The resulting family wealth can also impact access to higher-paying jobs. For example, a college or high school student may be offered a well-paying job in a neighboring town, but if they lack transportation options, it becomes challenging to accept the opportunity. Limited access to transportation can also restrict the number of hours a young worker can work.
3. Geographic Location
Geographic location plays a significant role in determining the wages of young workers. Many communities of color are concentrated in regions with lower minimum wages. For instance, states like Texas and Georgia, which have a large Black population, have minimum wages below the federal level. Additionally, variations in youth minimum wages can further exacerbate disparities.
4. Educational Attainment
Disparities in educational attainment also contribute to the wage gap. A lower percentage of Black young adults have college degrees compared to their white counterparts. This limits their access to higher-paying jobs that require post-secondary credentials.
In conclusion, the racial wage gap among young workers has multiple factors contributing to its persistence. It is crucial to address these disparities early on to prevent long-term consequences in terms of lifetime earnings.
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