As modern society develops and economic growth, researching the relationship between personal income and working hours is still a hot topic. It can help us understand how work-life balance affects personal income and well-being. Moreover, understanding the relationship between personal income and working hours is crucial for policymakers to design effective labor policies that promote work-life balance and reduce income inequality. A study by the National Bureau of Economic Research found that reducing work hours can lead to increased productivity, reduced absenteeism, and improved worker health and well-being (Giattino, 2023). In addition, according to the study published the International Labour Organization (2023) found that reducing working hours can lead to increased employment opportunities, particularly for women and young people, and can help reduce income inequality. However, according to the U.S. Labor Department data, the annual inflation rate for the United States was 3.2% for the 12 months ended October, compared to 3.7% previously (US Inflation Calculator, 2023). As the cost of living increases, employees may demand higher wages to maintain their standard of living. This can lead to employers reducing working hours or laying off employees to cut costs (New York at Work Annual Report 2022-23 | the ILR School, n.d)
Meanwhile, it is well known that income across different racial groups are unequal. According to a report by the Federal Reserve Bank of San Francisco, the black-white wage gap has persisted over time, with black men earning about 75 cents for every dollar earned by white men, and black women earning about 82 cents for every dollar earned by white women 1(Pedtke, 2017). While educational attainment has been shown to increase earnings for both black and white workers, the returns to education are generally lower for black workers than for white workers (Emmons & Ricketts, 2021). Furthermore, research has shown that black workers are more likely to be employed in low-wage jobs with limited opportunities for advancement, which can limit their earning potential (Jardina et al., 2023). Addressing these disparities will require a multifaceted approach that includes policies aimed at reducing discrimination in the workplace, increasing access to education and training programs, and promoting economic growth in communities of color (The Educational Opportunity Monitoring Project: Racial and Ethnic Achievement Gaps, n.d).
Different labor markets are composed of different industries, especially for cities, where the operation of a city can attract a workforce of different educational backgrounds and racial and ethnic composition. This diversity provides a unique opportunity to explore how different segments of the population navigate the economic landscape, particularly in terms of income generation and labor participation. New York State, as one of the largest cities in the world, is the best place to study the income and job disparities between different races. In addition to this, as a city where the cost of living is notoriously high, it becomes even more important to understand the factors that affect income and hours worked, given the current debates surrounding the wage gap, work-life balance, and the rising cost of higher education. Current research delves into the relationships between different variables, providing insights into broader issues of economic inequality and social stratification. In another word, this paper is aiming to answer the question: whether white and black disparities in working hours and personal income persist in New York.
Numerous studies have investigated income disparities between white and Black individuals, shedding light on the persistent challenges faced by Black workers in New York. A study by the Economic Policy Institute revealed a significant income gap, indicating that Black workers in New York earn 22.5% less than their white counterparts (Khanijahani et al., 2021). Further emphasizing the disparity, another study revealed that the median income of Black households in New York falls below half of that for white households (Morse et al., 2022; National Urban League, 2023). When it comes to working hours disparity, a study by the National Bureau of Economic Research delved into the differences in working hours between Black and white workers in New York (U.S. BUREAU OF LABOR STATISTICS, 2023). This study not only found that Black workers work fewer hours but also highlighted that the racial gap in hours worked is more pronounced among high-wage workers than low-wage workers. This result aligns with another research done by EPI, it was reported that with Black workers in New York working fewer hours than their white counterparts but also pointed out that Black workers are more likely to work part-time (Wilson & Darity, 2022). Furthermore, this study revealed that Black workers often find themselves in jobs with unpredictable schedules, making it challenging to balance work and family responsibilities. More specifically, Black women in New York tend to work longer hours with low wages and few benefits than white women (Beech et al., 2021).
A recent study explores how race and work hours influence income levels in New York City, highlighting significant disparities between Black and White residents. The study analyzed data from the American Community Survey (2019–2022), which offers insights into New York’s diverse population. Researchers focused on total earnings to identify income differences between racial groups, alongside weekly hours worked to examine work-life balance across demographics. Individuals were categorized as either Black or White, whether alone or in combination with other races, to capture racial distinctions in income and work patterns. Ultimately, the study underscores that racial identity and work hours contribute significantly to income levels, painting a detailed picture of income inequality in one of the most diverse cities in the country. These findings aim to inform policies that address racial income gaps and promote equitable economic opportunities across New York City’s workforce.
Key findings
The study’s data shows that White residents make, on average, $8,327 more per year than their non-White counterparts, even after accounting for similar weekly work hours. On average, New Yorkers earn $30,508 annually, but the range is vast, with incomes stretching from negative earnings (due to business losses) up to over $1 million.
For every additional hour worked per week, income increases by approximately $1,835 per year. While this boost applies across racial groups, the income increase is more substantial for White individuals. Specifically:
- White workers saw a boost of around $8,327 per year in total income compared to non-White workers, even when working comparable hours.
- Black workers earn less per additional hour compared to their White counterparts, with an average of $7,986 less annually than those in similar roles.
Statistical Analysis Reveals Key Disparities
The study’s regression analysis revealed that around 31% of the variation in personal income could be explained by race and weekly work hours alone, indicating that other unidentified factors also play a role in income differences. However, even with just these two variables, significant trends emerged. The data suggests that racial identity impacts earnings beyond work hours alone, emphasizing a structural gap in income.
Furthermore, findings indicate unique income patterns for individuals of mixed-race backgrounds. Those who identify as both Black and White, for example, display different earnings patterns that don’t align with those of individuals identifying as only one race. This highlights the complexity of race as a factor in economic outcomes and the need for nuanced understanding.
Implications of Income Gaps
This income gap linked to race suggests that New York’s labor market may still be influenced by systemic inequities, with race independently contributing to lower earnings for Black residents. The study indicates that addressing these disparities could require policy adjustments to support wage equality, including in work environments where Black and White workers are in similar roles.
While increased work hours lead to higher earnings across all groups, the analysis reveals that White workers generally see higher pay for the same additional hours worked. This underscores a racial income gap that persists even when effort, as measured by hours, is comparable.
What Should Schools Do
The persistent income gap between racial groups, despite similar working hours, reflects structural inequities in the labor market that can indirectly impact students. For example, when families in lower-income, racially diverse communities face economic stressors, students may experience barriers to academic engagement and emotional well-being. This suggests a need for school policies that allocate resources to schools in low-income areas, ensuring that students from all backgrounds have equal access to academic support and mental health services.
Additionally, the distinct income profiles observed in multiracial families highlight the importance of school policies that are inclusive and attentive to diverse student backgrounds. School policies that provide culturally responsive resources, counseling, and family engagement programs can help support students from mixed-race families, who may navigate unique cultural and social dynamics.
Furthermore, the modest correlation between working hours and income, particularly within Black racial groups, indicates that financial stress may persist even for families with high work commitment. For schools, this underscores the need for policies that enhance support systems for students whose families experience financial hardship, including expanded access to free or reduced-cost meals, after-school programs, and school-based counseling services.
In response to these findings, school policies can play a significant role by:
- Supporting targeted funding to schools in economically disadvantaged areas, to reduce educational disparities arising from family income levels.
- Implementing family support programs that foster better work-life balance and promote parent engagement in students’ education.
- Providing mental health resources and outreach programs that support students affected by economic and racial disparities in family income.
Ultimately, the insights from this study support the need for school policies that address the broader socioeconomic contexts affecting students, helping to create a more equitable and supportive educational environment for all students in New York City.
Article by Anqi Zhang
References
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