All girls face an uphill struggle for equality. But Black girls have the means to go to catch up to white ladies, let alone white guys.
Equal Pay Day is the date that marks just how far to the year that the typical woman needs to work to make exactly a similar amount the typical person did during the prior calendar year. This calendar year, Equal Pay Day dropped Tuesday, March 31, 2020. If you don’t a Black lady.
Black girls must wait till August 13, 2020 to indicate their Equal Pay Day. This’s since they create only 61 cents for each dollar a man makes when compared with 82 cents per buck wage difference for girls of all races united.
That 21 cent gap – and additional cards in a deck which’s already piled against women generally – is maintaining Black girls in the U.S. from attaining precisely the similar amount of financial stability as the typical white girl. This’s a peek at only a portion of that which Black women confront.
Black girls won’t reach pay equality until 2119. White women will obtain there by 2055
In the past 50 years, the gender pay gap for women has slowly narrowed. But the pace of progress for Black women has been glacial.
U.S. Census Bureau data shows that in the middle 1967 and 2017, the wage gap in the middle Black women and white non-Hispanic men has shrunk just 18 cents to today’s 61 cents per every dollar a man earns, up from 43 cents per dollar in the ’60s. During that similar period, the pay gap for women overall narrowed by 23 cents (from 57 cents to today’s 82 cents per dollar).
Time compounds the wage divide. The long-term cost of gender pay disparity for white women adds up to $530,000 of lost earnings over a 40-year career, according to AAUW (American Association of University Women) data. For Black women, it’s a staggering $950,000.
Nearly one-third of Black women (27%) are employed in service jobs compared to one in five white women (19%) who work in service.
Stated another way: A Black woman has to work until age 86 to make a similar amount of money a man earns by age 60.
The gap is even wider for foreign-born Black women who work full-time. They are paid just 50 cents for every dollar paid to a white, non-Hispanic foreign-born man, and earn a median income of $35,000 a year versus $70,000.
Four million households depend on a Black woman’s salary to survive
A Black woman’s paycheck is often essential to her family’s well-being. In fact, they are more than twice as likely as white women to be their family’s primary breadwinner, according to the Center for American Progress. Black women head nearly four million family households in the U.S. – and roughly one in four of those households live beneath the poverty line.
Imagine if the pay gap were eliminated – if a Black woman earned the similarly median annual wage as a white, non-Hispanic man ($61,576, versus the current median annual wage of $38,036 she earns). According to the National Partnership for Women and Families, she would have enough money for:
- 2 years of child care
- More than 2 additional years of tuition and fees for a four-year public university
- 16 additional months of premiums for employer-based health insurance
- 15 additional months of mortgage and utility payments or 22 more months of rent
- Enough money to pay off student loan debt in just over one year
Occupational segregation puts Black women at financial and physical risk
During the pandemic, we’ve seen how minority women have had to step up due to the type of work they do. At the similarly time – and for the similarly sense – they’ve also been losing their jobs at a higher rate than the rest of the working population. Nearly one-third of Black women (27%) are employed in service jobs, compared to one in five white women (19%) who work in service. In fact, the percentage of Black women who work full time in a minimum-wage position is higher than any other racial group.
When frontline workers put themselves in harm’s way during the coronavirus pandemic, it’s often a minority that’s on the line: Just over four-in-ten (41%) of frontline workers are non-white (Black, Hispanic or Latina, Asian-American/Pacific Islander), according to demographic data from the Center for Economic and Policy Research.
The only scenario in which a Black woman earns more than the average white male is if she has a Master’s degree and he has an associate’s degree.
Mass layoffs have highlighted how precarious employment is for people of color. Since the start of the pandemic, across the hardest-hit businesses – retailers, restaurants, hospitality work, education – women have lost their jobs at a higher rate than men working in similar fields. Based on April data, the unemployment rate for all women was 2% higher than it is for men.
Women of color have suffered exponentially. Based on Bureau of Labor Statistics monthly jobs data, the unemployment rate for Black women was 16.4% in April, and 20.2% for Hispanic women and Latina workers. By comparison, the April unemployment rate for white women was 15.5%. For white men, it was 12.4%.
Black women carry more student loan debt
Americans carry $1.5 trillion in student loan debt, with two-thirds of that – around $930 billion – carried by women. A 2016 Department of Education study found that more than 70% of Black students go into debt to pay for higher education versus 56% of white students.
Women tend to carry more student loan debt than men. But it’s Black women who are impacted the most. The mean amount borrowed by Black women to finance her education is $37,558, according to AAUW’s 2020 analysis of Department of Education data. The mean amount borrowed by white women was $31,346.
Twelve years after starting college, the white female borrower has paid off 72% of her loan balance. Over a similar time period, the typical Black female borrower’s balance has grown by 13%, according to a Demos study of debt.
It shouldn’t really be a surprise then that 57 percent of Black female school graduates report fiscal problems whenever they’re attempting to repay their student loans.
Black girls are paid for making an advanced level
You’d believe attaining high levels of education will benefit Black girls to increase the earnings ladder. Nope.
A National Women’s Law Center report discovered a Black woman having a mentor’s degree earns roughly precisely a similar amount (approximately $53,000 annually ) as a snowy non-Hispanic guy with only a few colleges. Even the gender/race wage gap proceeds among employees in high-wage jobs that need an advanced graduate level, like attorneys, engineers, and doctors. A Black woman having a doctorate level makes 60 percent of what type of white using exactly the similar amount makes.
The only real problem where a Black woman makes more than the typical white man is when she’s a Master’s level and he’s got a partner’s level. Even after that, she earns only a couple million dollars more annually normally.
The glass ceiling is significantly reduced for Black ladies
We all have lumps on our minds out of hitting the glass ceiling. However, every time a Black lady climbs the corporate ladder, then she still runs from rungs earlier compared to white peers.
A current gender pay gap research by PayScale revealed that career progress was fairly equivalent in the middle Black and Black ladies up to some point: One quarter of white girls and 24 percent of Black girls having slightly a bachelor’s level rose to the degree of manager/supervisor. But only 10 percent of Black girls make it into the manager and executive degrees versus 13 percent of white girls.
Bias can be present when it has to do with asking for an increase. Although all employees were equally prone to request their present employer for an increase, based on PayScale’s Raise Anatomy report, folks of colour were less likely to get one. Black females were 19 percent less likely than white guys to obtain a pay bulge when inquiring. Men of colour were 25 percent less probable.
Companies shouldn’t be amazed to find out that 52 percent of Black girls are considering leaving their businesses in the subsequent two decades, as per a Working Mother Research Institute report to be published in July.
Funding for Black female entrepreneurs drops dramatically short
The entrepreneurial spirit is strong among minority girls, though financing isn’t. According to an American Express State of Women-Owned Businesses Report, as of 2020, Black-women-owned businesses accounted for 21% of all female-owned businesses. However, a similar report showed that Black-female-owned businesses earned an average annual revenue of $24,000 per firm, well beneath the $142,900 among all women-owned businesses.
One possible explanation: The lower average revenue is affected by the surge in the growth of new businesses started by women of color in the middle of 2018 and 2020 (10% versus 5% for all women-owned businesses).
Another thing that’s lagging: Mainstream financial support for these businesswomen. Since 2009, Black women-led startups have received just 0.06% of venture/angel funding, according to the ProjectDiane2018 study of the state of Black women founders and the U.S. startups they lead. Although the number of Black women-led startups raising more than $1 million in funding is on the upswing, the average raised by those receiving less than that is $42,000. For comparison, the average seed round for all startups is $1.14 million.
Here’s what could happen if Black women-led businesses were nurtured to succeed: If the average revenue of minority women-owned companies matched that of white women-owned businesses, it would produce four million new jobs and $981 billion in revenue.