We need to talk about the Latina wage gap 

Latinas are not paid fairly. In fact, Latinas have the lowest earnings of any major race or ethnicity and gender group, earning on average, 43% less than white men and 28% less than white women. The Latina wage gap has persisted for far too long and, if we continue to do nothing, it will take up to two centuries to close this gap.

Latinas are a powerhouse population accounting for close to $1 trillion in US buying power, but earn on average only 55 cents to the dollar paid to white, non-hispanic men. This gap has hardly moved in over 30 years, and the longstanding pay disparities Latinas face have only been exacerbated by the Covid-19 crisis. 

Latinas make up just 7% of the overall workforce, but they account for 22% of child-care workers and there are nearly three in 10 Latinas working a front-line job today, but still being underpaid for their work. 

The wage gap for Latinas starts young, too. From age 16, Latinas are paid less than white boys the same age—and the gap continues to grow from there. 

Latina wage gap

The Latina pay gap by age. (Source:

Additionally, the wage gap widens for educated Latinas. Latinas are pursuing higher education more than ever before but education does not eliminate the wage gap. Data found that the gap is in fact largest for Latinas with a bachelor’s degree. 

Despite their higher education these Latinas earn 35% less than white men on average, and even in the same position, Latinas still earn less than white men. Latinas also ask for promotions and raises at similar rates to white men, yet for every 100 men promoted to manager, only 71 Latinas are promoted

Latina wage gap

The pay gap by education level. (Source:

Latinas face both sexism and racism in the workplace, with stereotypes fuling assumptions about Latinas’ work ethic and ambition. Stereotypes painting Latinas as overly domestic create the belief that Latinas are less ambitious in their careers making employers assume they don’t want to or expect to be paid well. 

These stereotypes and unfair biases are harmful and have real lasting consequences on Latinas and their families.  Latina mothers earn 54% less than white fathers, which means less money for basic family necessities like rent, food, school supplies, and impacts the family’s ability to save and invest long term.

Over time, the lost income adds up. According to the data, the average Latina’s career, she will lose over a million dollars compared to white men. 

Average income lost over a lifetime due to the pay gap. (Source:

Steps toward closing the Latina wage gap 

The gender wage gap has narrowed slightly over time but only by a few pennies over several decades. Currently the average pay for women in general is 82 cents per dollar earned by a man. A decade ago in 2011, that number was 77 cents, and in 1996 when the first Equal Pay Day was established, the number was around 74 cents. If this trend continues, the wage gap will not close for another 38 years or until around 2059.

For Black women the date is over a century away. And for Hispanic women it will be over two centuries before the wage gap closes if we do nothing to change the trend.

Some steps toward closing the Latina wage gap include supporting legislation and organizations aimed toward eliminating gender wage gaps such as PowHerNY, an inclusive statewide network of individuals and organizations committed to accelerating and securing economic equality for all New York women. 

Another step Latinas can take to combat the wage gap, especially for those in low-wage jobs, is to join a union. According to data, the overall wage gap for union members is 53% smaller than the wage gap for non-members. 

We cannot wait two centuries for the Latina wage gap to close. We need to take action now. 

For more information and further learning on the gender wage gap:

systemic racism

How systemic racism is costing the U.S. trillions

Systemic racism has cost the U.S. a whopping $16 trillion, A new study by Citigroup released last week finds out. That’s right, the U.S. could have been $16 trillion richer if it not for racial inequality which has economically impacted Black Americans for over the past 20 years.

systemic racism

Photo by Clay Banks on Unsplash

Systemic racism is costing the U.S. trillions

In recent months we as a society have become much more aware of the injustices that Black Americans face in our country. The Black Lives Matter movement has brought many of the issues caused by systemic racism to the fore with recent protests and rallies pushing back against these injustices and crimes against Black Americans. From the killing of innocent unarmed Black men and women such as George Floyd and Breonna Taylor, and the mass incarceration of people of color (POC) to economic inequality such as POC receiving lower wages from their white co-workers, recent months have shone a light on the effects of systemic racism in the U.S.

When people talk of racism, many white people will claim it’s a thing of the past. “Racism is over,” they’ll say. “It ended long ago,” as if the Civil Right movement was centuries ago and not merely 70 years, with many who fought in the movement still alive today. The system wants you to forget. They want you to believe that it “was so long ago, but we’re past that now” so you won’t go take a closer look at the issue and the world around you today.

But a closer look reveals that racism is far from over and its effects have deep and lasting consequences for Black Americans and their quality of life.

The effects of systemic racism on Black Americans

The future if we close the economic gap today (Source: Citi Research)

“The 400 years of enslavement of Black populations in the Americas has residual effects that persist to this day despite tomes of legislation providing equal access to various aspects of American life under the law,” says the study conducted by Citigroup. “Attitudes and policies undermining equal access are at the root of the racial gaps plaguing U.S. society.”

Citigroup’s study attempts to quantify the economic impact of systemic racism. Its findings have estimated that:

  • Black workers have lost $113 billion in potential wages over the past two decades because they could not get a college degree.
  • The housing market has lost $218 billion in sales because Black applicants could not get home loans.
  • And about $13 trillion in business revenue never flowed into the economy because Black entrepreneurs could not access bank loans.

If we were to close the gap of economic inequality due to systemic racism and discrimination, then the U.S. could have close to $5 trillion in gross domestic product over the next five years, the study indicates.

What can we do to close the economic gap?

Since systemic racism is a huge part of the issue, the first step to closing the gap of economic inequality is to address factors of systemic racism. Incarceration rates among Black Americans, voter suppression efforts and conscious bias in hiring all play a role in hindering the U.S. from making strides in closing this gap, Citigroup said.

systemic racism

Attitudes and policies that undermine equal access are the root of the racial gaps plaguing U.S. society (Source: Citi Research).

Our efforts need to be directed toward dismantling these systems and biases that are limiting and oppressing Black Americans. One way to do this is to put pressure on government officials to implement change such as promote financial inclusion, implement tax reform and housing incentives, invest in wealth building, invest in protections against discrimination, provide guaranteed wages and implement salary history bans.

On a corporate level, we need to urge corporations to support diversity and inclusion initiatives from the top, address racial gaps in hiring, retention, and firing, recruit more Black board members and dismantle structural barriers to hiring black talent.

economic inequality

A path toward equality (Source: Citi Research)

Citigroup has taken initiative and said they will be directing $1 billion toward helping to close the racial wealth gap, investing $550 million over the next three years in encouraging home-ownership for people of color, and another 50 million will go toward capital investments for Black entrepreneurs.

On a personal level, we as individuals can utilize our political power by voting in the upcoming 2020 election and putting leaders in power who will prioritize issues of equality. It is our duty as citizens and members of a society to look out for those in our communities.

How we can close the gap of racial inequality (Source: Citi Research)

A society is a community first and foremost and members of a productive and just society cannot only think of their individual selves but they must think of every member. If members of a society are not being treated fairly and given the same equal rights and opportunities, than the entire society will suffer.

The economic inequality caused by centuries of systemic racism has cost the U.S. trillions of dollars and severely impacted the livelihood of Black Americans. If we come together as a country and fight for rights of our fellow citizens, then we all will prosper