Mind the Gap: Factors Driving the Growing Racial Wage Gaps and Solutions to Close Them

Executive Summary

Despite efforts to reduce them, wage gaps between White and Black workers in the US^[1] are large and have been increasing over the past decade. Our research suggests there are powerful barriers to reducing these disparities and keeping them from becoming even larger: Black workers are severely underrepresented in industries, occupations, and locations where the fastest growth in high-paying jobs is taking place.

Many factors contribute to wage disparities, including geographical segregation and labor market segmentation, as well as different access to educational opportunities and to social and professional networks. In some instances, individual circumstances that lead people to select particular jobs or professions (e.g., family responsibilities, strong connections with their local communities, etc.) also become an element. In this report, we focus specifically on labor market segmentation and on the underrepresentation of women and Black workers in high-paying industries and jobs.