Wage Gap Among Latinos Is More Acute Than for Other Groups, But Much Worse for Latinas
New analysis from the Pew Research Center shows higher paid Latino workers have watched their weekly earnings grow 4.4 percent, from $1,604 to $1,675, since the beginning of the Great Recession to date — 2007 to 2013. The same is not being experienced by those earning lower wages, who saw their weekly wages fall by 9.4 percent, or $278 to $252, according to Pew Research Analysis.
According to the analysis, the reasons for this disparity is high unemployment and a rise in part-time work. The share of Latinos working part-time increased to 18.7 percent in the fourth quarter of 2013 — an increase of 13.6 percent since the fourth quarter of 2007. This has affected the median earnings due to part-time work equating to a lower wage and fewer hours worked.
In the United States, there are 22 million employed Latinos. About half of Latino workers are employed in just four industries — construction; eating, drinking and lodging services; wholesale and retail trade; and professional and other business services. These industries were at the center of employment change of Latinos during the recession and recovery according to the analysis.
And for Latinas it is much worse. Earlier this year, The National Partnership for Women and Families, a nonprofit, not-partisan group dedicated to fairness in the workplace, released an analysis for Equal Pay Day that showed women employed full time earn 77 cents for every dollar a man earns for a gap of just over $11,000. Further analysis showed that African-American women were paid 64 cents while Latinas earned just 54 cents for every dollar paid to white, non-Latino men.
How does this affect households where 2.7 million households are headed by Latinas and 40.7 percent of all Latina-headed family household live below the poverty level?
"Unfair wages cause real and lasting hard to women, the families they support and to our economy," said Debra L. Ness, president of the National Partnership for Women & Families, according to Dallas Morning News. She added, "...[W]hen women and their families lose thousands of dollars in critical incomes each year, they have significantly less money to spend on food, gas, rent and other basic necessities, and the consequences for their families and our state and national economies can be devastating."
Using U.S. Census data, the analysis showed the States with the largest populations of Latinas working full-time are California and Texas, with 1.4 million and 1.09 million respectively, where the median wages are $29,000 and $26,000. Compare those salaries to the median wage of $52,535 annually for a white, non-Latino man. If the gap was eliminated, says the report, it would mean 190 more weeks of food for a Latinas family, 17 more months of mortgage and utilities payments or 27 more months of rent, and nearly 7000 gallons more of gas.