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On Thursday, April 29, 2021, at 12:00 p.m. (ET) Diversity and Inclusion Subcommittee Chairwoman Beatty and Ranking Member Wagner will host a virtual hearing entitled, “Closing the Racial and Gender Wealth Gap Through Compensation Equity."
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Witnesses for this one-panel hearing will be:
• Dr. Andrew Chamberlain, Chief Economist, Glassdoor
• Emily M. Dickens, J.D., Chief of Staff, Head, Government Affairs and Corporate Secretary, Society for Human Resource Management (SHRM)
• Maya Raghu, Director of Workplace Equality and Senior Counsel, National Women's Law Center
• Dwana Franklin Davis, Chief Executive Officer, Reboot Representation
Overview
This hearing will explore how discrimination based on gender, race, sexual orientation, and disability has led to compensation and pay disparities in America. Unequal compensation for women and people of color are primary drivers of the gender and racial wealth gap, with white households having a net worth 10 times that of Black household and the median wealth for single white women being $41,500 compared to $100 and $120 for single Black and Hispanic women, respectively. Research shows that companies that pay white men more than their counterparts who are female and people of color may find themselves unable to retain talent, especially diverse employees. Progress towards closing the gender and racial pay gap has been further delayed because women and people of color have also suffered disproportionate unemployment and financial setbacks during the COVID-19 pandemic.3 Companies can take proactive measures towards closing compensation gaps, including conducting pay equity audits, building inclusive work environments, and publicly disclosing pay gaps. This hearing will also discuss legislative and other solutions to create compensation equity for women and people of color in the workplace.
Compensation Gaps in the United States
Despite having similar qualifications, data shows that women, people of color, LGBTQ+ individuals, and people with disabilities earn lower wages than their straight, white, non-disabled, and male counterparts in the workplace. A 2020 report by the Bureau of Labor Statistics indicates that, on average, women of all races and ethnicities earned 83 cents for every $1 earned by men. Additionally, men are also more likely to receive equity shares as compensation than women due to employer biases where men are perceived “as more capable in work settings than women and… [as] more important to retain in a company.” Studies also show that gender wage disparities are greater for women of color. A 2018 report on the gender pay gap concluded that for every dollar made by white men, Black women make 62 cents, Latinas make 54 cents, Asian women make 89 cents, Native Hawaiian and Pacific Islander women make 61 cents, and Alaska Native and American Indian women make 57 cents. Similarly for LGTBQ+ individuals, the Williams Institute has noted that, gay and bisexual men earn 10 percent to 32 percent less than similarly qualified heterosexual men, even when controlling for factors such as race, education, job function, and years of work experience. A study by the American Research Institute reveals a similar wage gap for people with disabilities, noting that they earn “on average 37 percent less than non-disabled people, and the pay gap actually increases with higher education attainment.”
Although some studies indicate marginal improvements in compensation gaps over the last few decades, other data demonstrates that most individuals currently experiencing compensation disparity may not see that gap closed in their lifetime. According to the New York Times, “in [the past] 25 years, the pay gap has shrunk by just 8 cents.” The article also cited data that showed an increase in a woman’s earnings from 74 cents in 1996 to 82 cents in 2021 for every dollar earned by a man. CNBC recently cited a comparison of wage gaps by the National Women’s Law Center which indicates that for Asian women, the wage gap actually increased by three cents on the dollar compared to White men between 2018 and 2019. The American Association of University Women also projected that White women could expect to see their wage gap close in about 50 years, but Black women and Latinas may have to wait significantly longer-350 and 432 years, respectively- to achieve pay equity with White men. They further noted that these wage gaps exist for women of color because "[they] have not had- nor do they have now-access to the same education and employment opportunities that white people have....[and] are disproportionately...
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28 окт 2024
