October 13, 2022
You would think a rise in corporate America would help close the pay gap for Black women compared to white men, however, it only gets wider.
A recent study from Payscale.com reveals that Black women are being paid the least in comparison to other groups, even as the gender pay gap is closing.
“WHEN DATA ARE CONTROLLED FOR COMPENSABLE FACTORS, BLACK WOMEN HAVE THE WIDEST GENDER PAY GAP ($0.98),” THE STUDY SAYS IN COMPARISON TO THE RATE OF $1.03 FOR ASIAN WOMEN.
According to researchers, the pay gaps widen for Black women as they advance in their careers. They are reportedly paid less regardless of having the same level of experience as white men, in addition to other compensable factors, even when performing the same jobs.
Statistics from the study show that 66 percent of Black or African American women are individual contributors compared to 62 percent of white women and 59 percent of white men.
“ALL WOMEN OF COLOR EXCEPT FOR BLACK WOMEN START OUT WITH CONTROLLED PAY EQUITY RELATIVE TO WHITE MEN AT THE INDIVIDUAL CONTRIBUTOR LEVEL, BUT AS THEY PROGRESS UP THE CORPORATE LADDER, THE GENDER PAY GAP WIDENS.”
“Black women individual contributors make $0.99 for every $1 white men make when the same job characteristics are controlled for, but only $0.95 as executives,” researchers wrote.
According to Insider, a study from Goldman Sachs provided that the wealth gap is increasing for Black households, where the median percentage of wealth is 90 percent less compared to the median white household. Analysts provide that Black women remain as the most disadvantaged group across a broad range of economic measures including earnings and health.
“Lower levels of earnings for Black households account for about two-thirds of the average wealth gap,” analysts informed, “while the remainder is largely explained by financial factors, including access to capital and investment opportunities, personal finances, financial information, and housing.”
The Payscale.com study reports that employers who acknowledge these challenges can make an impact by prioritizing pay equity. Pay transparency laws also play a factor in efforts towards closing the gender pay gap.