Black women remain significantly underrepresented in traditional high-paying occupations despite their qualifications, according to a recent study conducted by the Urban Institute. The research reveals that Black women, including disabled and immigrant groups, are often crowded into low-paying, unstable jobs without benefits, even when their educational attainment qualifies them for higher-paying roles.
Ofronama Biu, a principal research associate in the Income and Benefits Policy Center at the Urban Institute, aims to shed light on occupational segregation and its impact on Black women’s economic well-being.
Biu expressed her passion for exploring this issue, explaining, “We know that there have been so many findings around how Black workers are underrepresented in higher-paying jobs. I wanted to look at other dimensions of work—such as being a temp agency worker or having access to health insurance and retirement benefits.”
The research methodology used by Biu and her team was inspired by the occupational crowding theory developed by Barbara Bergman in the 1970s. This approach considers educational requirements for jobs and the actual educational attainment of workers. It enables researchers to identify whether groups, such as Black women, are overrepresented or underrepresented in certain occupations based on their qualifications.
According to the findings, Black women earn a median income of $31,785 annually in occupations where they are overrepresented. In contrast, they earn $40,499 in jobs where they are underrepresented compared to white men.
Biu noted that the educational attainment of Black women is not the root cause of their underrepresentation in high-paying jobs. Instead, she suggests that “discrimination is happening,” as Black women who are qualified for higher-paying roles are frequently passed over for less qualified individuals from other demographic groups. This limits their access to stable employment with benefits and amplifies the wage gap.
For example, disabled Black women earn a median wage income of about $20,000 less than white men, and this gap widens to $28,000 in occupations where Black women are overrepresented.
Black women are also more likely than white men to be crowded into occupations without benefits. They are six times more likely to work in roles that employ part-time workers and often overrepresent themselves in temporary agency jobs. Nearly one in five Black women work in occupations with a high concentration of temporary workers, highlighting the precarious nature of the jobs they hold.
The implications of these findings are profound, both for policymakers and employers. Biu said that policymakers need to address employment discrimination more proactively. She referenced researchers who propose conducting audits of employers to identify where discrimination is occurring rather than waiting for reports from workers.
“When occupational crowding is happening, and people are underrepresented in higher-paying roles, that has other effects,” Biu said. These effects include reduced savings, difficulties paying off debt, and negative impacts on mental health.
For employers, the report suggests ensuring that hiring and promotion practices are free from bias. Biu advised employers to examine how screening processes—whether handled by humans or artificial intelligence—may be contributing to discriminatory outcomes. Additionally, employers can play a role in improving worker power by supporting collective bargaining rights, especially for non-traditional, unstable jobs.
Some of these recommendations include expanding healthcare and retirement benefits for all workers, strengthening the social safety net, and addressing employment discrimination through stronger enforcement and auditing processes.
As Biu pointed out, “We do need home healthcare workers. We do need retail workers. So how do we make their lives better?”
One answer lies in providing broader support systems not tied to employment, such as universal healthcare and retirement options, which would help mitigate the economic vulnerability faced by workers in low-paying or temporary jobs.
TAKEAWAYS
- In occupations where they are overrepresented, Black women earn a median of $31,785 a year. In occupations where Black women are underrepresentedcompared with white men, they earn $40,499.
- Disabled Black women earn a median wage income roughly $20,000 lower than white men. Among occupations that are overrepresented, this gap between white men and disabled Black women grows to $28,000.
- Black women are more likely than white men to be crowded into occupations without benefits. They’re more than six times more likely to be concentrated in occupations most likely to employ part-time workers.
- Black women are most likely to be crowded in the worst form of alternative work. Nearly one in five Black women are overrepresented in occupations with a high concentration of temporary agency workers.
