Recently, Payscale released updated data from an online survey they conducted between 2017 and 2019, in which they explored the Racial Wage Gap for Men. The racial wage gap explored by Payscale is- how many cents men of color earn for every dollar White men earn. Both Controlled and Uncontrolled results are presented. A Controlled Pay Gap, is one where the comparison is based off of workers with similar experiences, e.g., job type, qualifications, seniority, etc… Uncontrolled Pay Gap, does not take into account such similarities. Additionally, in this case since Payscale’s “data skews toward professional white-collar workers”, the results reported are from those with at least a bachelor’s degree. The results of the Racial Wage Gap For Men surveyed were as follows:
Thrivin' and Survivin', Exploring Oren Cass's Cost-Of-Thriving-Index
Let's Face It- COTI & The US Middle Class
In February 2020, a study was released by Oren Cass titled, “The Cost-Of-Thriving Index: Reevaluating The Prosperity Of The American Family.” The study introduces the concept of a Cost of Thriving Index, COTI. The base model for the study were families of four where the primary wage earner is White and Male in the United States. The salary was based off median weekly income (wages) of men over 25 as reported by the Bureau of Labor Statistics, BLS.
In the US, a family where the primary wage earner is White & Male is considered as thriving if they can survive off of the wages of the primary wage earner AND afford to pay off four major basket component expenses within the same year. The four major basket component expenses are as follows:
- Annual Rent for Three-Bedroom Residence
- Annual Family Health-Insurance Premium
- One Semester of Public College
- Annual Operation of a Vehicle
What the Executive Summary of this study surmised is under these parameters it cost the primary wage earner of a family of four 30 weeks of work to pay for the yearly expenses of the basket components in 1985. While, in 2018 it took the primary wage earner 53 weeks to pay for the yearly expenses of the basket components. The problem, however is that there are only 52 weeks in a year. This conclusion leads us to wonder, if the average Model “Nuclear” Family was no longer thriving in the U.S. in 2018, what does this mean in 2021? Furthermore, what impact does the COTI have on Female Led & Minority Led households, which statistically earn less by pennies on the U.S. dollar of White Males? Are these families on average even surviving?
When the study was publicized, the response and pushback were immediate as interest and debate started to emerge on the accuracy of the COTI presented. However, the COVID-19 global pandemic in 2020 impacted and changed life as we knew it. With so many people in need, the conversation around the validity of the COTI, abruptly halted and was seemingly indefinitely placed on the back burner.
Every where we looked in the U.S. people were struggling. The employed, underemployed and small business owners suffered. The majority of businesses permitted to remain open to the public were those which provided essential services. Essential employees were those who worked for businesses which provided food, clothing, safety, transportation, government, medical care, pharmaceutical care, etc.
So it’s no surprise that Cass’s study and introduction of the COTI as a possible barometer to measure the affordability factor, was pushed aside to address the urgency of the COVID-19 pandemic.
Now we find ourselves in the last quarter of 2021. While things are not where they were pre-pandemic, there is a fervent push to return to activities and way of life which existed pre-pandemic. A quote unquote “return to normal.”
But how great was the old normal when the “Model Nuclear Family”, may no longer be thriving? When it takes the primary wage earner 13 months to pay off a year of annual expenses? If we are to consider the COTI, as a factor in determining affordability, then how much worse is it for families which are not headed by White males? What about households where the primary wage earner is female, minority and/or single parent headed? Since these households statistically tend to earn less than two parent White male headed households, how many months on average may it take them to pay for their yearly expenses?
Native American -$0.91 uncontrolled, $0.99 controlled.
Black-$0.87 uncontrolled, $0.98 controlled.
Hispanic- $0.91 cents uncontrolled, $0.99 cents controlled.
Pacific Islander- $0.95 cents uncontrolled, $1.00 dollar controlled.
Asian- $1.15 uncontrolled, $1.02 controlled
According to the results, Black Men, had the least median wages in both controlled and uncontrolled. While Asian Men made the most. Their median wages exceeded White Males by $0.15 in uncontrolled and $0.02 controlled.
Christopher Ingram of the Washington Post, points out that in accordance with Cass’s research the median wage for females is 80% of males. Ingram further surmises that in a family where the primary wage earner is female she will need to work 66 weeks to cover the four big annual expenses. A recent analysis conducted in 2020 by the Pew Research Center on the median hourly wages of full and part-time workers, found a similar gap in wages between male and female workers. With women earning 84% of what men earned. The Pew Research Center article by Amanda Barroso and Anna Brown on the findings reported that it would take, “an extra 42 days of work for women to earn what men did in 2020.”
A recent U.S. Department of Labor Blog on gender pay gap reveals how when women are classified into commonly accepted, racial, social, and economic groups, the gap becomes even more disparate. Pointing out that on average, what would have taken a year for a Non-Hispanic White Male to earn in the year 2020, it would take women well into the year 2021, to catch up. Case-in-point:
- Women overall on average had to work until March 24, 2021
- Asian American and Pacific Islander women had to work until March 9, 2021
- White women had to work until April 9, 2021
- Mothers in comparison to fathers had to work until June 4, 2021
- Black women had to work until August 3, 2021
- Native American women had to work until September 8, 2021
- Latina women had to work until October 21, 2021
Let’s face it long before the pandemic brought the US and the world to its knees, analysts were evaluating concerns over the of the rapidly shrinking middle class
Could it really be that average families in the US are no longer thriving? The hard unpleasant reality is: The data across several; Gender, Racial, Ethnic, Social and Economic groups all point to the fact that the majority of these groups, on average tend to earn pennies on the dollar of what a White Male earns. So, statistically speaking, if the value of a dollar a White Male earns is no longer allowing him and his family to “thrive”, then for all intents and purposes the aforementioned groups are struggling to thrive as well, perhaps even more so. Simply put,
#💩rollsdownhill😕
Let’s face it if you are not Thriving you are Surviving- Statistically Speaking
If I were tweeting this right now I would write- “that’s it, that’s the Tweet.”
For any family, if they cannot afford to pay for the four basic basket components from the collective salaries of the household,
in one year, then they are not thriving. Some articles from prominent respected publications ( I shall not mention which ones) did not agree. The major dissent they had with the basket components presented in Cass’s study were for healthcare and education. For healthcare, it is true that the cost will not be as expensive as what was presented in the study for those who receive medical coverage from their employer. For education, it is also well known that families can receive free and low cost financial aid. Yet,
mentioning these points, could
only validate the point of the study even further.
The COTI definition of thriving means a family can afford to pay the entirety of these expense for one year out of their own salary.
Receiving additional aid from an employer or financial aid means that they may not
be able to
afford to pay these expenses solely from their salary.
#SMH (Shaking My Head)
Let’s face it
Equity helps Affordability
The conversations taking place right now on Diversity, Equity and Inclusion, are long overdue. The wave of social justice initiatives sweeping the US have revealed just how vital it is for organizations to have conversations, review, evaluate and change practices so they are in-line with DEI standards. The fact the BLS reports state on average it takes Latina a year and 10 months to earn what a White Male earns in one year is staggering. For single mothers, who have to work one year and six months in order to earn what a White Male earns in a year is troubling. Especially considering they have no choice but to be the primary wage earners in their family. As a result conversations on affordability will always be incomplete when the standard measurement accepted is based on the median earnings of White Males. Especially when the COTI study is used in conjunction with the BLS, revealing that it will take some groups almost 2 years to be able to afford one year’s worth of basket components. While conversations on equity cannot take place without factoring in affordability, equal pay is a moral, ethical, and integrity issue which must be rectified immediately. #paymewhatyouoweme💰
But…Affordability doesn’t equate to Equity
This is the crux of this article. In Real-Time the COVID 19 Pandemic is revealing the US is in the midst of serious situations. From
global shipping crate supply chain issues, to employers finding a hard time filling positions and the rising costs of goods and services. These things are adversely impacting families already struggling to afford their basics needs and expenses. Even before the pandemic, the average family in the US was struggling financially. According to a
CBS News report from 2019, “7 in 10 Americans struggle with at least one aspect of financial stability.” (Survey result taken from Financial Health Network.) With seventy percent of Americans struggling before the pandemic, it is clear that affordability in America is concerning.
#thestruggleisreal
Let’s face it, Together
A quick rehash of what I wish readers to takeaway:
- A majority of Americans are suffering financially
- Unequal pay for equal day’s work is unacceptable
- Equity helps affordability
- Affordability doesn’t equate to equity
These four points can be difficult and polarizing topics to discuss. There will be those who read this and draw critique and others may commend. Either way the importance is to acknowledge the reality of these takeaways. I wrote this piece as an outline of sorts to draw connections between equity, affordability and how it truly impacts all Americans. Though there is sure to be debate and dissension on how to go about alleviating/solving the Equity and Affordability problem in America, I feel the very first thought someone should have is a classic one, “Do unto others as you would have done unto you.” If you had a choice would you give yourself 60 cents, 80 cents or one dollar? Would you want to work for almost two years in order to earn enough to pay for one year of expenses for you and your family? If your answers to these questions is, “one dollar” and “no”, then you can start there. #theuisforunited
