Skip to main content
  • Foundation
  • Executive network
  • CEO Circle
  • SHRM Business
  • Linkage Logo
  • Store
  • Sign In
  • Account
    • My Account
    • Logout
    • Global
    • India
    • MENA
SHRM
About
Book a Speaker
Join Today
Renew
Rejoin Now
Renew
  • Membership
  • Certification
    Certification

    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
      Certification Portal
  • Topics & Tools
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    Events & Education

    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    Community

    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Close
  • Membership
  • Certification
    back
    Certification
    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
      Certification Portal
  • Topics & Tools
    back
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    back
    Events & Education
    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    back
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    back
    Community
    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Join Today
Renew
Rejoin Now
Renew
  • Store
    • Global
    • India
    • MENA
  • About
  • Book a Speaker
  • Foundation
  • Executive network
  • CEO Circle
  • SHRM Business
  • Linkage Logo
SHRM
Sign In
  • Account
    • My Account
    • Logout
Close

  1. Topics & Tools
  2. Workplace News & Trends
  3. Compensation & Benefits
  4. Black Workers Still Earn Less than Their White Counterparts
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

Black Workers Still Earn Less than Their White Counterparts

Employers can examine their pay policies to root out inequities

June 26, 2020 | Stephen Miller, CEBS

A group of business people having a meeting in a conference room.

As employers in the U.S. tackle issues around racism, fresh attention is being given to the racial wage gap and why black men and women, in particular, still earn substantially less than their white counterparts. Nearly 56 years after the passage of the Civil Rights Act, "we find equal pay for equal work is still not a reality," noted Jackson Gruver, a data analyst at compensation data and software firm PayScale.

Last year, PayScale analyzed differences in earnings between white men and men of color using data from a sample of 1.8 million employees surveyed between January 2017 and February 2019.

SHRM Resource Spotlight
Overcoming Workplace Bias

 

 

Among the findings, Gruver reported: "Even as black or African-American men climb the corporate ladder, they still make less than equally qualified white men. They are the only racial/ethnic group that does not achieve pay parity with white men at some level."

The study found that black men had the largest "uncontrolled pay gap" relative to white men, when comparing the average earnings of black men and white men in the U.S.

On average, black men earned 87 cents for every dollar a white man earned. Hispanic workers had the next largest gap, earning 91 cents for every dollar earned by white men. On the other side of the earnings spectrum, Asian men typically earned $1.15 for every dollar earned by a white male worker.

RacialWageGap-01.jpg


Better news was found in the controlled pay gap, a comparison of pay for black and white men with the same experience and education doing the same job in the same geographic location. This approach showed that black men earned 98 cents for every dollar earned by white men with the same qualifications. While that difference may seem small, when a 2 percent difference in pay is compounded over the course of a career, it adds up to black men taking home significantly less pay than their white male peers.

RacialWageGap-02.jpg


To put that in perspective, the median salary of a white man in our sample is $72,900; the controlled median pay for black or African-American men is thus $71,500," Gruver said. "This suggests a $1,400 difference in pay that is likely attributable to race."

An Opportunity Gap

Gruver attributed much of the racial pay gap to an opportunity gap and occupational segregation.

"When we look at the opportunity gap, we find men of color have higher rates of holding individual contributor jobs than white men," he noted. The study found, for instance, that a larger percentage of black men (63 percent) and Hispanic men (61 percent) held individual contributor roles, compared with 56 percent of white men who weren't in management.

Even when they hold management positions, black men are paid less than their white counterparts. Executive-level black men earned 97 cents for every dollar white men with the same qualifications took home, PayScale found. Even more concerning, the racial wage gap widened as black men moved up the corporate ladder.

This difference may be partly attributable to occupational segregation, meaning that black men are more likely to work in industries that generally pay less, such as social services, in comparison with white men in senior positions, Gruver said.

Black Women's Wage Gap

"Comparing what women of color are paid to what white, non-Hispanic men make demonstrates the enormous economic impact of the double burden of sexism and racism," wrote Brandie Temple, a public-policy fellow at the nonprofit National Women's Law Center (NWLC), and Jasmine Tucker, director of research at the organization, in an online post.

NWLC calculations, based on the U.S. Census Bureau's Current Population Survey for 2016, revealed that when comparing all men and women who work full time, year-round in the U.S., women were paid just 80 cents for every dollar paid to their male counterparts. But the wage gap was even larger when looking specifically at black women who work full time, year-round—they were paid only 63 cents for every dollar paid to white, non-Hispanic men.

"This gap, which amounts to a loss of $21,001 a year, means that black women have to work more than 19 months—until the very last day of July—to make as much as white, non-Hispanic men did in the previous 12-month calendar year," Temple and Tucker observed.

NWLC also found that:

  • Black women make up 10 percent of the low-wage workforce—jobs that typically pay less than $11 per hour, or about $22,880 annually—while they make up just 6.2 percent of the overall workforce.
  • Black women's share of the high-wage workforce—jobs that pay more than $48 per hour, or about $100,000 annually—is less than half their representation in the overall workforce.

RacialWageGap-03.jpg


Black women who worked full time, year-round in low-wage occupations were typically paid about $21,700 annually, compared to the $36,000 typically paid to white, non-Hispanic men in these occupations, NWLC found. "This gap translates to a loss of $14,300 each year to the wage gap—more than enough to pay for an entire year's worth of rent or more than a year and a half of child care costs," Temple and Tucker noted.

Among workers in high-wage occupations—such as lawyers, engineers and physicians—black women who work full time, year-round were typically paid about $70,000, compared to the $110,000 typically paid to white, non-Hispanic men in the same jobs. This amounts to an annual loss of $40,000 each year, or $1.6 million over a 40-year career.

[SHRM members-only toolkit: Managing Pay Equity]

Education and Earnings

Even after completing undergraduate and graduate degrees, black and Hispanic workers earned less than non-Hispanic white workers with the same, or often less, education, said Roy Eduardo Kokoyachuk, a partner at ThinkNow Research, which helps companies respond to the demographic and cultural drivers that influence consumer decisions.

In a May 2020 column for the website Market Insider, Kokoyachuk wrote that "The numbers are sobering. I ran the Census Current Population Survey's 2018 median income levels by race and bachelor's degree attainment, and found that black and Hispanic bachelor's degree holders earn nearly a quarter less than Asians and whites with equal levels of education."

RacialWageGap-04-REV.jpg

While some undergraduate majors lead to higher wages, and Asian students were more likely to major in science, technology, engineering and math (STEM) subjects, for instance, that doesn't explain why wage differences exist more broadly, Kokoyachuk noted.

Even among black and Hispanic workers who have earned professional degrees, "their incomes still don't break six figures. Whites and Asians, however, double their incomes by earning professional degrees, allowing them to make well over $100,000 a year," Kokoyachuk said.

RacialWageGap-05.jpg


NWLC's analysis found that black women with a bachelor's degree were typically paid $46,694—just under what white, non-Hispanic men with only a high school degree were paid ($46,729). Black women had to earn a master's degree to make slightly more ($56,072) than white, non-Hispanic men with just an associate degree ($54,620).

Black Women's Wage Equality by Education

EducationBlack Women's EarningsWhite, Non-Hispanic Men's EarningsWhat Black Women Are Paid for Every Dollar Paid to White, Non-Hispanic Men
No high school degree$21,847$36,48060¢
High school degree$29,468$46,72963¢
Associate degree$36,409$54,62067¢
Bachelor's degree$46,694$75,08062¢
Master's degree$56,072
$87,05164¢

Source: NWLC calculations based on U.S. Census Bureau's Current Population Survey, 2016 Annual Social and Economic Supplement.

Confronting the Problem

Although workers of all races, on average, earned higher wages in 2018 than in 2000, Kokoyachuk pointed out that "at every level of wage distribution, the gap between black and white wages was larger in 2018 than it was in 2000," the data showed.

The racial wage gap can be overcome, he said, if policymakers are committed to taking actions such as:

  • Stepping up enforcement of employment anti-discrimination laws.
  • Offering tax incentives for minority entrepreneurs and business owners.

Employers should consider taking these steps:

• Performing pay audits.

While pay audits have become common to address unconscious biases against women, racial biases should not be overlooked. 
Employers should perform statistical self-audits of pay decisions and review policies regarding starting pay, allowable pay differences, merit pay increases and promotional pay increases to root out patterns of racial bias that may be unintentional on the part of managers.

 

 

• Not asking applicants about their past earnings.

According to new research from Boston University, salary history bans can substantially close both gender and racial gaps. After salary history bans were passed, wages increase for job changers by 8 percent for women and 13 percent for black people.

 

"Salary history bans do work and are an important component in closing gender and racial pay gaps," said Tanya Jansen, co-founder of beqom, a cloud-based compensation software provider.

• Upgrading technology.

"While instituting salary bans is progress in the right direction, companies should also consider instituting data-driven technology to help automate the compensation decision-making process and eliminate unconscious biases from the start of the recruiting and hiring process," Jansen said. 

 

[Update: Beginning in August, the U.S. Army will no longer include photos of soldiers on records used to select future officers, to help eliminate unconscious biases in its promotion-and-advancement process, defense officials said on June 25.]

Career Mentoring

Because economic outcomes are heavily influenced by social networks, Kokoyachuk also advised improving career-mentoring programs for minority workers.

For younger workers at the start of their careers, these efforts can include "creating better opportunities for minority graduates to mingle with or be mentored or sponsored by decision-makers from other groups," he noted. Doing so can help them build up social connections that they can use when seeking higher-paying positions.

Additional resources on addressing wage disparity and workplace-bias issues are listed below:

  • SHRM blog article on Recognizing and Mitigating Unconscious Bias in the Workplace.
  • SHRM resource page on Pay Equity.
  • SHRM How to Talk with Your Employees About Race Express Request.

Related SHRM Articles:

Black Workers Face Health Care and Retirement Savings Benefits Gaps, SHRM Online, July 2020

The Importance of Pay Equity, HR Magazine, Spring 2020

Creating a Mentoring Program: Yodas Not Required, SHRM Online, March 2020

 

Compensation
Global Mindset
Inclusion and Diversity
Pay Equity
Race

Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Partner with Us
  • Copyright & Permissions
  • Post a Job
  • Find an HR Job
Follow Us
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • SHRM Newsletters
  • Ask An Advisor

© 2025 SHRM. All Rights Reserved

SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer


  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now