Racial Inequalities Withholding $2.1 Trillion from U.S. GDP

Janie Boschma of the National Journal discusses the findings of a new report, "The Equity Solution," co-authored by PolicyLink and the University of Southern California. The report examines 150 major metropolitan areas within 50 states, each potentially gaining millions in additional annual revenue if residents of color were on equal footing as white residents in terms of average wages. The report also discusses each metropolitan area’s "root cause of racial inequality—how much of the income gap is attributable to a disparity in wages and how much to unemployment and underemployment.

For example, inequality in Santa Barbara, Calif., is mostly driven by a disparity in wages and could be addressed by raising wages or introducing more better-paying jobs. On the other side of the spectrum is Flint, Mich., where inequality is entirely caused by disparities in employment."

To alleviate these often expensive and deep-rooted social issues, the report’s authors "recommend several lower-cost legislative solutions, such as removing questions about criminal history on job applications, as well as enacting comprehensive immigration reform. But they acknowledge that more costly, high-return investments in public education and job training, as well as enforcement of civil-rights laws, would be necessary in order to make real progress in closing the racial income gap."

To inform individuals on data within their city and state, PolicyLink has also released their online visualization tool, the National Equity Atlas. In addition to providing average citizens knowledge on racial inequality in their home, PolicyLink hopes it will inspire action from government and community leaders.