Government needs to close racial pay gaps in its workforce

14%. That’s the estimated racial/ethnic pay gap between employees of color and White employees across California’s civil service workforce, a new report finds. While that may seem like a relatively small difference, that 14% pay gap can add up to a salary or wage disparity of approximately $10,000 each year.

The problem becomes only worse when one compares the average pay of historically underrepresented minorities (URM, which includes Black, Hispanic/Latin@, and American Indian communities), and females of color with the average pay of higher paid males, such as White and Asian males. In fact, analysis of publicly available data show that pay gaps between some females of color and White males reach an upwards of 36%.

What is driving these race and gender pay inequities?

This analysis, prepared by Hinnaneh Qazi, as part of her UC Berkeley Masters of Public Policy Graduate capstone project, in partnership with the California’s Health in All Policies Task Force, shows that the these disparities are largely a result of overrepresentation of females of color in part-time and seasonal work, concentration of URM employees in lower paying occupations as opposed to higher paying occupations groups, and White employees being more likely to hold management positions, especially the highest paid management positions. Using supplemental data from the U.S. Census American Community Survey (ACS), the paper also illustrates that pay inequality persists even after controlling for educational attainment.   

Moving forward, the State has the opportunity to investigate what is causing those inequities – and examine underlying issues related to recruitment, outreach, retention, culture, and/or promotion. NxtGov supports work like this through our program areas, but it takes more than that. We believe our workforce should equitably reflect the diversity of our state, especially in Sacramento, one of the most diverse cities in the nation.

California is a leader in shedding greater light on the State’s gender pay gap. They’ve also taken significant measures to mitigate it, from the passage of the California Fair Pay Act (SB 358) in 2015 and a bill in 2017 (AB 168) which bans employers from inquiring about a job candidate’s salary history. This year, members of NxtGov participated in unfocus groups applying UX principles to assess the use of current state tools that could be improved to increase professional development.

It’s now time to take on racial pay inequities in addition to and in intersection with gender equity – and other cities, states, and the federal public sector should follow suit.

To view the full report, click here.

 


¹State demographic data only captures an employee’s sex (whether an employee reports being male or female), and does not collect gender identify information.