Although social and political efforts have been made to close the wage gap and in turn the wealth gap, recent Census data still indicates that women earn 77 cents on the dollar compared to men. For women of color the gap is even wider: Black women earn 69.5 percent, and Hispanic women 60.5 percent, compared to the earnings of their white male counterparts.
The wage story is just as unequal for single mothers: They make less than men, less than married women, and less than women without children. Adding race to the equation, single mothers of color are hit hardest by the wage gap. Studies show that single mothers of color are much more likely to live in poverty and face significant barriers to creating wealth. Lower wages can often prevent families from engaging in asset- and wealth-building mechanisms such as pension plans because of fewer job benefits and resources. Lower earnings can hinder families from investing and saving their money, a key strategy for building wealth. Additionally, wealth not only impacts economic security but long-term retirement security as well.
While it’s recognized that the racial wealth gap is widespread there is a critical need to understand the intersection of race and gender in accumulating wealth.