Why to observe Latina Equal Pay Day

Equal Pay Days mark the symbolic date when a woman’s earnings “catch up” to those that a male peer made during the previous year. For Latinas, who earn a ludicrous 54 cents for every dollar earned by their white male counterparts, reaching a man’s 2022 wages would mean working until Oct. 5, 2023.

In other words, Latinas would have to work an extra 10 months to earn the same amount a white man earns in a comparable role in the previous year.

According to a report by the American Association of University Women, at the current pace of change the wage disparity for Latinas won’t close until the year 2197. This stark reality underlines the significance of observing Latina Equal Pay Day and taking immediate steps to address this inequity.

The Latina wage gap

Latinas in full-time positions made just 0.57 cents for every dollar earned by a white, non-Hispanic man.

The repercussions of this income gap are substantial, translating to an average monthly loss of $2,477, which is $29,724 annually, and an aggregate loss surpassing a million dollars over a 40-year career. In Maryland, which has a lesser divide than some other states, full-time, year-round Latina employees trail their white male peers’ earnings by $40,077.

Many attribute this wage discrepancy to the types of jobs that Latinas hold, often perceived as occupations of “lesser prestige.” However, a report from the Institute for Women’s Policy Research emphasizes that these essential roles assumed by women, particularly Latinas, yield substantially lower wages compared to equivalent positions held by men.

Meanwhile, even as Latinas exhibit increased participation in formal education, the wage gap remains. The Postsecondary National Policy Institute reports that Latinas’ college enrollment rates increased by 6 percentage points from 2010 to 2020.

However, the data shows that the gap is accentuated for professional women, and that Latinas with a bachelor’s degree earn 31% less than white men with the same education level, on average.

Data demonstrates that the pay gap is a complex structural problem, shaped by the longstanding sexism and racism experienced by people of color and in particular immigrant women in the United States.

Ramifications of disparities

Despite having stable jobs, nearly 1 in 10 Latinas working 27 hours or more per week find themselves below the poverty threshold, nearly double that of non-Hispanic white women. This reality is even more pressing for single mothers and their families, presenting formidable challenges in meeting basic needs and breaking the cycle of intergenerational poverty.

The cumulative loss of income due to the wage gap generates far-reaching consequences for Latinas. This disparity leads to a lack of disposable income, which often pushes Latinas to rely on loans for common necessities, such as owning a car or accessing higher education. Yet diminished earnings jeopardize their ability to meet income requirements for obtaining loans to finance these expenses, often leading to unfavorable lending conditions and even loan denials. Consequently, these avenues that could elevate earnings, like education and reliable transportation, remain out of reach.

The wage gap also exerts a tangible and crippling effect on wealth accumulation for Latinas over time. A study by the National Association of Hispanic Real Estate Professionals discovered that Latinos faced an 81% higher likelihood of being denied a conventional mortgage than non-Hispanic white applicants.

Promoting change

Effectively addressing this complex issue requires policy reform, cultural adjustment, and educational initiatives. A pivotal avenue for change is enacting and enforcing equal pay legislation. By upholding rigorous equal pay laws, we can align Latinas’ earnings with those of their non-Hispanic male counterparts and guarantee just compensation for Latina women across the country. Measures like wage transparency, anti-discrimination policies, and penalties for wage disparities contribute to fostering a more equitable wage landscape.

Everyday people and small businesses can also address the extreme pay inequities by incorporating some of these initiatives.

• Ensuring accessible, high-quality childcare services. Such access empowers Latinas (and other women) to sustain their careers and pursue education without being hampered by caregiving responsibilities, thereby actively bridging the wage divide.
• Equipping Latinas with financial literacy and negotiation skills, which can have lasting effects for them and their families.
• Ensuring personal commitment from decision-makers to provide the organizational resources to address the pay gaps, including funding, and time, for the training sessions, increased salary expenses, fortitude to address internal friction among recruiters, managers, etc.

By observing Latina Equal Pay Day, we are reminded of the urgent need to address the wage disparity that Latinas continue to face. It serves as a call to action for individuals, businesses, and policymakers to collaborate in dismantling barriers, implementing equitable policies, and creating a society where Latinas can prosper.

Veronica Cool is founder of Cool & Associates LLC, a business management firm specializing in Hispanic engagement, community outreach and translations/language services. Contact her at [email protected].