Four Ways to Lift Up Women of Color in the Workforce

Ensuring the economic success of women of color has never been more crucial to America's future. Though women of color make up a large and growing share of the workers, breadwinners, and entrepreneurs that are driving local and regional economies, they are consistently paid less than all other groups of workers — White women, men of color, and White men [see graph above]. Further, women of color are all too frequently employed in low-wage jobs that fail to provide family-supporting wages or basic benefits such as paid parental and sick leave.

"More than 70 percent of women of color are either the sole or co-breadwinner, making their economic security inextricably linked to that of their family," said Fatima Goss Graves, vice president for education and employment at the National Women's Law Center.

Tackling the disparities in pay and employment facing women of color will require policies at the national, state, and local level that link these women to the education, workforce training, business support, and work opportunities necessary to thrive. Several cities and states have taken pioneering steps to enact the types of policies and programs that lift up women of color workers, providing models for other local, state, and federal initiatives. These local successes center around four policy priorities:

(1)   Improve the quality and wages of low-wage jobs: Because women of color are disproportionately employed in the low-wage sector and live in or near poverty, strategies to raise the floor on low-wage work can have immediate impact for these women and their families. Effective policies to raise the floor include those that encourage workplaces to invest in their workers (e.g., programs that upgrade workers' skills and pay) or make it easier for workers to organize and collectively bargain for better pay and working conditions. "You are seeing some companies recognize the value of investing in their workers — that it is valuable for workers to feel good about their workplace and be able to fill their roles at home," Goss Graves said.

Policies that directly establish higher standards for wages and working conditions, such as increasing minimum and living wages, eliminating the sub-minimum tipped wage, and providing paid sick leave, child care supports, and retirement savings are also vital to increasing the pool of quality low-wage jobs. In September 2014, after a two-year campaign by community, labor, and civil rights groups, the Los Angeles City Council approved a living wage ordinance to raise the minimum wage for the city's hotel workers to $15.37 an hour. This will raise pay for 13,000 low-income hotel workers, most of them women and people of color. 

(2)   Create pathways for women of color to access good jobs: Women of color often face barriers to accessing "middle-wage" jobs that offer career pathways but do not require a four-year degree, such as those in construction or some health care. Targeted and local hiring policies for public investments can increase access to middle-wage jobs for women of color, as can workforce training strategies that connect women of color to apprenticeship programs and workforce training programs in high-growth industries.

The Washington State's Home Care Worker Training Partnership is the nation's first large-scale career pathway program for home care aides, training 40,000 aides a year in 200 classrooms across the state and online, providing instruction in 13 languages. The partnership runs the nation's first registered apprenticeship for more advanced training so that aides can increase their earnings and move up the career ladder.

(3)   Support women of color to become entrepreneurs: Despite many barriers to quality employment, women of color are the fastest-growing segment of entrepreneurs and job creators, numbering 1.4 million workers and generating more than $220 billion in revenues in 2013. At the same time, numerous studies show that women of color have a harder time getting business loans or equity investments than their White and male counterparts. Policies that increase access to affordable capital, support business development for entrepreneurs of color, and leverage government procurement policies to link women of color-owned businesses to government contracts are all effective strategies for supporting these entrepreneurs, and helping them create employment opportunities within their communities.

The New Orleans Regional Transit Authority has dramatically increased contracting with firms owned by women and people of color from 11 to 31 percent as part of a new commitment to equity.  

(4)   Ensure girls of color can succeed in school and access science, technology, engineering, and math (STEM) education and careers: Higher education (at least an associate, if not a bachelor's degree) is a critical stepping stone for success in the 21st century job market, but girls of color often face challenges accessing high-quality preK-12 public education and are more likely to attend schools that lack STEM-related courses. Many girls of color are also subject to overly harsh school discipline measures that result in disproportionately high rates of suspensions and expulsions, reducing their learning time and ability to thrive in school, according to Goss Graves. Policies to eliminate the use of harsh school discipline measures, increase access to high-quality public education and STEM courses, and supplemental programming that exposes girls of color to STEM-related skills and experiences are key to setting girls of color on a track toward later career success and financial stability.

Black Girls CODE is a San Francisco-based nonprofit dedicated to training and empowering girls of color to become leaders and innovators in computer science and technology. In the three years since its founding, it has served more than 3,000 girls ages seven through 17 and opened seven chapters around the country.

For more data on women of color in the economy, such as the percentage of people of color who earn $15 an hour or more, see the National Equity Atlas.

Read the rest of the May 15, 2015 America's Tomorrow: Equity is the Superior Growth Model issue.

How the Proposed Fair Housing Rule Will Boost the Economy

Strong and effective fair housing laws are essential for building prosperity — for people struggling to get by, for local and regional economies that benefit from thriving communities, and for the nation as a whole. That’s why a proposed rule by the Department of Housing and Urban Development is so important. As inequality soars and neighborhoods of concentrated poverty are on the rise in most American cities, the rule would push municipalities to deliver on the promise of fair housing. By helping to connect low-income families to neighborhoods of greater opportunity, the rule has the potential to spur economic growth not only within these households, but within cities and regions.

The rule, due out this summer, is called Affirmatively Furthering Fair Housing (AFFH). It would sharpen the tools that equity advocates and public sector leaders can use to increase investment in high-poverty neighborhoods, fight racial discrimination in the housing market, and add more affordable housing choices in neighborhoods with jobs, good schools, and other essentials. It would do this in three important ways:

(1)  It would make municipalities more accountable to community member needs by requiring resident engagement on fair housing and community development issues.
     
(2)  It would require a data-driven analysis (an "assessment of fair housing") of community conditions and impediments to fair housing, including factors that contribute to areas of racially concentrated poverty and high unemployment (e.g., school performance, transportation access, and toxic exposures).
     
(3)  It would require jurisdictions to tie federal funding — such as Community Development Block Grants and HOME funds — to addressing the fair housing challenges that are identified.

Taken as a whole, the proposed rule would mean that cities, counties, and states must be proactive to ensure all people can live in neighborhoods where they have access to the opportunities and resources we all need to succeed.

This rule is long overdue. It will help turn around the lasting negative impacts of historically discriminatory practices that contributed to the creation of poor neighborhoods of color, and it will reduce barriers that cut millions of Americans off from economic opportunity. This rule can be a powerful tool to advance equitable economic growth for the nation, and here are five reasons how:

(1)  Reducing growth-limiting racial and economic exclusion: Research shows that families living in disinvested and low-income communities have limited economic mobility and reduced future earnings. This effect creates generational cycles of poverty and limited opportunity: For example, two-thirds of Black children raised in the poorest quarter of U.S. neighborhoods a generation ago are now raising their children in similarly poor neighborhoods. This proposed rule has been proven to help direct more investment to neighborhoods that need them and help low-income families move to neighborhoods with more resources. Both the Puget Sound and the Twin Cities regions built off of their fair housing assessments – part of a pilot for the proposed AFFH rule – to focus new infrastructure investment in Native American, African American, African immigrant, Latino and Southeast Asian communities in need of investment. When St. Louis conducted a fair housing assessment, the city found that Housing Choice Vouchers were being used primarily in low-income neighborhoods where there were few jobs and community amenities. This assessment helped the city revamp its program to help residents find diverse housing choices that better met their needs.
     
(2)   Connecting people to job opportunities: By encouraging more job investments in high-unemployment communities and promoting transit investments that connect these communities to jobs elsewhere, this rule would help people previously isolated from employment opportunities better engage in the regional workforce and contribute to local economies. For example, Puget Sound used its fair housing assessment to strategically plan for a new food distribution hub and job incubators within historically disinvested neighborhoods where job growth was needed. And a New Orleans assessment that found transit was not serving late-shift schedules for hospitality and healthcare workers led to realignment of services to better meet low-wage, transit-dependent workers’ needs.
     
(3)  Creating jobs: Places that support the development of quality affordable housing and new infrastructure in disinvested neighborhoods also create new jobs both in the short- and the long-term for communities. The National Association of Home Builders estimates that building 100 affordable homes can lead to the creation of more than 120 jobs during the construction phase and roughly 30 jobs in a wide array of service industries once homes are occupied. When coupled with job training, inclusive hiring and contracting practices, and provisions for good wages and benefits, these jobs can help put low-income and unemployed residents on a pathway to good careers and financial stability.
     
(4)  Attracting new employers: Lack of quality affordable housing that connects to transit makes it more difficult for employers to recruit and retain employees, putting the local economy at a competitive disadvantage. In a national survey of more than 300 companies, 55 percent of large companies reported an insufficient level of affordable housing in their area, and two-thirds of these respondents cited this shortage as negatively affecting their ability to hold onto qualified employees. Other survey data suggests that affordable housing availability plays an important role in where new businesses decide to build or expand their operations. In Boston and Chicago, fair housing assessments helped these cities support new affordable homes around growing job centers in order to attract more employers to the area.
     
(5)  Providing low-income families with more disposable income to invest and save: The disproportionate housing burden on low-income communities and communities of color makes it hard for them to save for emergencies, make long-term investments, or spend money within the local economy on necessary goods and services. Affordable rent and mortgage payments, and access to affordable transportation, can substantially decrease household costs, in some cases by as much as five hundred dollars a month. When families can save on housing and transportation costs, it bolsters their resiliency and financial stability and allows greater spending on health care and education. These investments contribute to greater stability not only for these households, but for the broader economy: a recent study found that every extra dollar going into the pockets of low-wage workers actually adds about $1.21 to the national economy.

The Affirmatively Furthering Fair Housing rule is powerful only if we understand it and put it to use. Learn more about the rule in our upcoming webinar.

How the Proposed Fair Housing Rule Will Boost the Economy

Strong and effective fair housing laws are essential for building prosperity — for people struggling to get by, for local and regional economies that benefit from thriving communities, and for the nation as a whole. That’s why a proposed rule by the Department of Housing and Urban Development is so important. As inequality soars and neighborhoods of concentratedpoverty are on the rise in most American cities, the rule would push municipalities to deliver on the promise of fair housing. By helping to connect low-income families to neighborhoods of greater opportunity, the rule has the potential to spur economic growth not only within these households, but within cities and regions.

The rule, due out this summer, is called Affirmatively Furthering Fair Housing (AFFH). It would sharpen the tools that equity advocates and public sector leaders can use to increase investment in high-poverty neighborhoods, fight racial discrimination in the housing market, and add more affordable housing choices in neighborhoods with jobs, good schools, and other essentials. It would do this in three important ways:

(1)  It would make municipalities more accountable to community member needs by requiring resident engagement on fair housing and community development issues.
     
(2)  It would require a data-driven analysis (an "assessment of fair housing") of community conditions and impediments to fair housing, including factors that contribute to areas of racially concentrated poverty and high unemployment (e.g., school performance, transportation access, and toxic exposures).
     
(3)  It would require jurisdictions to tie federal funding — such as Community Development Block Grants and HOME funds — to addressing the fair housing challenges that are identified.

Taken as a whole, the proposed rule would mean that cities, counties, and states must be proactive to ensure all people can live in neighborhoods where they have access to the opportunities and resources we all need to succeed.

This rule is long overdue. It will help turn around the lasting negative impacts of historically discriminatory practices that contributed to the creation of poor neighborhoods of color, and it will reduce barriers that cut millions of Americans off from economic opportunity. This rule can be a powerful tool to advance equitable economic growth for the nation, and here are five reasons how:

(1)  Reducing growth-limiting racial and economic exclusion: Research shows that families living in disinvested and low-income communities have limited economic mobility and reduced future earnings. This effect creates generational cycles of poverty and limited opportunity: For example, two-thirds of Black children raised in the poorest quarter of U.S. neighborhoods a generation ago are now raising their children in similarly poor neighborhoods. This proposed rule has been proven to help direct more investment to neighborhoods that need them and help low-income families move to neighborhoods with more resources. Both the Puget Sound and the Twin Cities regions built off of their fair housing assessments – part of a pilot for the proposed AFFH rule – to focus new infrastructure investment in Native American, African American, African immigrant, Latino and Southeast Asian communities in need of investment. When St. Louis conducted a fair housing assessment, the city foundthat Housing Choice Vouchers were being used primarily in low-income neighborhoods where there were few jobs and community amenities. This assessment helped the city revamp its program to help residents find diverse housing choices that better met their needs.
     
(2)   Connecting people to job opportunities: By encouraging more job investments in high-unemployment communities and promoting transit investments that connect these communities to jobs elsewhere, this rule would help people previously isolated from employment opportunities better engage in the regional workforce and contribute to local economies. For example, Puget Sound used its fair housing assessment to strategically plan for a new food distribution hub and job incubators within historically disinvested neighborhoods where job growth was needed. And a New Orleans assessment that found transit was not serving late-shift schedules for hospitality and healthcare workers led to realignment of services to better meet low-wage, transit-dependent workers’ needs.
     
(3)  Creating jobs: Places that support the development of quality affordable housing and new infrastructure in disinvested neighborhoods also create new jobs both in the short- and the long-term for communities. The National Association of Home Builders estimates that building 100 affordable homes can lead to the creation of more than 120 jobs during the construction phase and roughly 30 jobs in a wide array of service industries once homes are occupied. When coupled with job training, inclusive hiring and contracting practices, and provisions for good wages and benefits, these jobs can help put low-income and unemployed residents on a pathway to good careers and financial stability.
     
(4)  Attracting new employers: Lack of quality affordable housing that connects to transit makes it more difficult for employers to recruit and retain employees, putting the local economy at a competitive disadvantage. In a national survey of more than 300 companies, 55 percent of large companies reported an insufficient level of affordable housing in their area, and two-thirds of these respondents cited this shortage as negatively affecting their ability to hold onto qualified employees. Other survey data suggests that affordable housing availability plays an important role in where new businesses decide to build or expand their operations. In Boston and Chicago, fair housing assessments helped these cities support new affordable homes around growing job centers in order to attract more employers to the area.
     
(5)  Providing low-income families with more disposable income to invest and save: The disproportionate housing burdenon low-income communities and communities of color makes it hard for them to save for emergencies, make long-term investments, or spend money within the local economy on necessary goods and services. Affordable rent and mortgage payments, and access to affordable transportation, can substantially decrease household costs, in some cases by as much as five hundred dollars a month. When families can save on housing and transportation costs, it bolsters their resiliency and financial stability and allows greater spending on health care and education. These investments contribute to greater stability not only for these households, but for the broader economy: a recent study found that every extra dollar going into the pockets of low-wage workers actually adds about $1.21 to the national economy.

The Affirmatively Furthering Fair Housing rule is powerful only if we understand it and put it to use. Learn more about the rule in our upcoming webinar.

B Corporations Deliver on Equity, Sustainability

Benefit corporations provide a way for businesses to make profit without having to slash wages or resort to environmentally destructive practices. Ben & Jerry's, for instance, is one of the world's most popular ice cream brands with an annual sales revenue of $132 million. Its lowest-paid worker makes $16.13 an hour, which is 46 percent above the living wage in home state Vermont, and the company offsets more than 50 percent of its greenhouse gas emissions. More than 40 percent of the board and management are from underrepresented populations, such as women, people of color, lower-income individuals, and people with disabilities.

In a time when U.S. corporate profits are soaring but wages remain stagnant, Ben & Jerry's and hundreds of other companies, including Cooperative Home Care Associates profiled below, are choosing an alternative business model – benefit corporations – driven not just by profits but also by fair working conditions, diverse leadership, and environmentally sustainable practice.

One of the fundamental challenges to growing more "triple bottom line" businesses is the legal requirement to maximize profits that applies to corporations. Anything that takes away from profits, such as higher wages or more sustainable environmental practices, leaves the corporation vulnerable to being sued by its shareholders. This limitation hinders companies from advancing any values beyond profit making.

In response to this limitation, a movement was started to pass legislation allowing for a new type of corporate entity called the benefit corporation. The benefit corporation provides legal protection for businesses that choose to treat their workers well, protect the environment, and invest in their communities, even if it means their annual profits are not as high. As of 2013, 19 states plus the District of Columbia passed benefit corporation legislation, including Delaware, which is home to 50 percent of all publicly traded companies and 64 percent of Fortune 500 companies.

In 2012, Ben & Jerry's took a step beyond being a benefit corporation and became a Certified B Corporation, as conferred by a nonprofit organization called B Lab. There are currently more than 1,000 registered B Corps. A Certified B Corp voluntarily meets higher standards of governance, workforce treatment, environmental impact, and community involvement. Companies must score at least 80 points on a scale of 200 to be eligible for certification.

Certified B Corps are part of a community of socially responsible companies and span a large spectrum of goods and services. In 2012, Cooperative Home Care Associates (CHCA) in the Bronx, New York, became the first home care company to become a Certified B Corp. Their overall B Score, at 154, is nearly twice the median score.

One of the reasons CHCA scores so high in the B Impact Assessment is because it is a worker-owned cooperative with the vast majority of the workers and worker-owners being from the Bronx. In an industry where good-paying jobs are hard to come by, CHCA deliberately chose a different business model, one that prioritizes workers over profits, and has flourished for nearly 30 years. The company has grown from 12 people to now over 2,000 employees, 70 percent of whom are worker-owners.

"When we started, a lot of for-profit home-care companies were established and were seen as a way of making a lot of money in a short time," said Michael Elsas, president of CHCA. "You didn't have to pay workers that much, you didn't have to train them that well, and you could move in and make a killing. And, in that environment we wanted to establish something a little different, more socially responsible."

Treating the workers well was not just a social mission, but it made good business sense. Elsas said, "Many of the people we were seeing were women, particularly women of color. The thought was if we train people longer and really spend time with them, if we prepare them for an entry-level position and get them ready to work and remove those barriers to work, and, if we provided a lot of support for those workers both before and after they were trained by us, we could create quality, full-time jobs. And then as a result of that quality job, we would be providing quality care that we could, in fact, provide better services."

CHCA has been a co-op since the company started in 1985. Going from a co-op model to also certifying as a B Corp was an easy decision and made a lot of business sense, Elsas said. "Distinguishing ourselves as a B Corp would be helpful in marketing to be able to say we are the only B-Corp certified home care company. We thought that would be helpful for those entities that want to do business with a B Corp. Quite honestly, it was a natural for us. There was very little that we had to do to get certified because we were already a worker-owned company, we already had everything in place."

Elsas said that CHCA is successful not because it is a co-op but because of the best practices they employ. Currently, 90 cents of every dollar that comes into the company goes to the worker. While paying workers less would result in higher profits and better dividends, Elsas said higher dividends is not what has made the company successful for 30 years. Instead, what makes CHCA successful is "how we train, how we supervise people, how we respect people, how we let people participate in what we do."

Companies like CHCA and Ben & Jerry's show that businesses can make a profit and embrace socially responsible practices. Higher wages and better work environments help working families reach economic security. Consumers can support B Corps and environmentally and socially conscious businesses by buying their products and services. A full list of B Corps can be found here.

New York City Invests in Worker Co-ops — and Equitable Growth

Before Yadira Fragoso became a worker-owner at Si Se Puede, a housecleaning cooperative of immigrant women in New York, she earned $6.25 to $10 an hour in various jobs. She had no control over her hours or schedule and sometimes had to bring her children to work.
 
Now she earns $20 to $25 an hour. Along with the cooperative's 50 other worker-owners, she shares decision making for all business policies and operations. Most importantly, she says, she has greater economic security and job flexibility, so she can spend more time at home with her kids. Joining the co-op "changed my life," she recently told the New York City Council.
 
Stories like this and determined organizing by advocates for a fairer, more inclusive economy have persuaded city officials to invest $1.2 million this year in developing worker-owned businesses in low-income communities and communities of color. It's the largest investment in such businesses ever made by a city government in the United States (though only a tiny fraction of the city's $75 billion budget).
 
The initiative aims to support the creation of 234 jobs and bring training and financial resources to 20 existing co-ops and 28 start-ups. It promises to raise the profile of worker-owned cooperatives as a strategy for equitable economic growth.
 
How worker co-ops spur the growth of good jobs
 
Job growth in New York City since the Great Recession has been concentrated in low-wage industries. Black and Latino communities are unemployed or underemployed at double the rates of Whites. Economic barriers have left more than one in five New Yorkers in poverty and driven income inequality to a historic high. A recent report by the Federation of Protestant Welfare Agencies (FPWA) documents these trends and says they threaten the city's economic growth.
 
The report points to small businesses — the city has about 200,000 — as the largest job creator, and to worker-owned businesses as an effective model for closing income and wage gaps by moving people from joblessness or precarious employment to dignified jobs. Worker co-ops tend to provide higher wages, good benefits, training, and career pathways, particularly in typically low-wage industries like housecleaning and home care.
 
At the eight-year old Si Se Puede, for instance, worker-owners receive 100 percent of the pay for their work — there are no agency fees or middlemen — and receive training in the use of safe, eco-friendly cleaning products.
 
Most successful co-ops provide financial returns to worker-owners, creating avenues to accumulate wealth. And because they are democratically owned and managed, they empower workers, build dignity, and inspire engagement in civic society. "There's no greater medicine for apathy and feelings of living on the edges of society than to see your own work and your voice make a difference," says the FPWA report.
 
A beacon for the burgeoning worker co-op movement in the city and across the country is Cooperative Home Care Associates (CHCA) in the South Bronx. Founded in 1985 with 12 workers, it employs more than 2,000 people, making it the nation's largest worker co-op and a significant driver of employment in the Bronx. Wages and benefits for CHCA home care aides have increased more than 40 percent in the past five years, and turnover is 15 percent, compared with more than 60 percent for the industry overall.
 
New York is also home to several dozen young worker co-ops, mostly in immigrant communities. Occupy Sandy — an offshoot of Occupy Wall Street that mobilized to aid cleanup in the Rockaways after Superstorm Sandy — has seized on co-op development as an important growth strategy for the area, which was struggling even before the storm. The group has partnered with The Working World, a nonprofit organization that provides investment capital and technical assistance to co-ops, to incubate worker co-ops in the area, particularly in the large Central American community.
 
A bakery and a construction co-op have launched, and three more co-ops — juice bar, landscaping, and screen printing — are in development, said Pablo Benson, a consultant for Worker-Owned Rockaway Cooperatives.
 
"A huge component of the long-term recovery effort is to help develop a more democratic form of economic redevelopment," he said. "It's remarkable what can be unleashed when people have the power to make decisions."
 

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