Intersection of gender and race in the labor market essay
The issue of income inequality has a significant impact on the functioning and well-being of the American society (Ryscavage, 1999). The presence of income inequality undermines the development of democracy (Noah, 2013), leads to the decrease of the overall level of health in the society (Mink & O’Connor, 2004) and leads to higher mortality rates (Gilbert, 2008). For example, Kawachi, Kennedy, Lochner & Prothrow-Stith (1997) show that income inequality reduces social capital and social cohesion, contributes to the decline of social trust and is positively correlated with high mortality rates.
Nowadays income inequality in the United States is increasing (Rezvani & Pirouz, 2013). According to West Coast Poverty Center (2014), the results of ranking the U.S. population according to income and dividing it into five equally sized groups show that the richest group earned about 44% of total income in 1980s and 50% in 2010. These data clearly illustrate that income inequality is growing.
Key factors contributing to such tendency are globalization, demographic changes, changes in income composition and the weakening role of labor unions (Rezvani & Pirouz, 2013). Furthermore, Kitov and Kitov (2013) determined that income inequality for the youngest age group (15-24) was increasing over time. Hence, studying income inequality and its impact on different social groups is a viable research topic. It is important to identify social groups which are most affected by income inequality and to assist these groups by the relevant legislation and social policies.
Empirical evidence
There is a notable increase of income inequality in the United States which is witnessed at least since 1970s (Walker, Spohn & DeLone, 2011). Income inequality is most frequently measured by Gini coefficient which changed from 0.394 in 1970 to 0.403, 0.428 and 0.462 in 1980, 1990 and 2000 (Reardon & Bischoff, 2011).
Cotter, Hermsen & Vanneman (1999) explore the probability for representatives of different social groups (combinations of race/ethnicity and gender) to earn an income higher than the income of the corresponding percentile of white men. The authors find that this probability is lower for all other social groups (women, African American men, Hispanic men, Asian men). In particular, the groups for which earning an income comparable with white men is most difficult are Hispanic women, African American women, Hispanic men and Asian women. Asian men and white women belong to the relatively “successful” groups, while African American men might have to work harder to earn a comparable income, but they still have a decent chance (Cotter, Hermsen & Vanneman, 1999).
Theoretical Argument
According to the research of Banerjee & Yakovenko (2010), the major cause of income inequality is the increase of income of the top earning households. Furthermore, Banerjee & Yakovenko (2010) find analogies between the dynamics of income inequality and energy consumption and argue that globalization contributes to the development of income inequality and inequality of energy consumption.
Reardon & Bischoff (2011) explore the patterns of income segregation for different social groups; the authors find that there is a significant relationship between income segregation (unequal geographic distribution of income) and income inequality, and such relationship is stronger for black households compared to white households.
Svizzero and Tisdell (2003) explore the causes of within-group income inequality and find that the less evident causes of such inequality emerge due to the differences in innate abilities, to the changes of demand for particular skills and to the decentralization of wage system. According to the findings of Schneider (2013), within-group income inequality notably increased among white men, while for black and Hispanic workers the changes of within-group inequality were minor. Such findings allow to conclude that the major cause of the inequality for minorities is primarily caused by group differences (gender and race/ethnicity) rather than by macro factors such as globalization.
Statement of Hypotheses
In this research, there are three major hypotheses. Hypothesis 1: Among U.S. working adults, differences in income level exist between genders. Hypothesis 2: Among U.S. working adults, differences in income level exist between different races/ethnicities. Hypothesis 3: Among U.S. adults, differences in income level exist between the different social locations created by race/ethnicity and gender.
Basing on the preliminary analysis of sources devoted to studying income inequality, it is possible to assume that there exists gender-based income inequality and income inequality related to race/ethnicity. Therefore, the initial assumption is that both Hypothesis 1 and Hypothesis 2 are correct. Furthermore, it is assumed that there are specific social locations for which income level difference is statistically significant, i.e. that Hypothesis 3 also holds. The analysis of gender and race/ethnicity inequality will help to identify social groups that are most vulnerable to income inequality.
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