Study finds Asheville is 2nd worst-paying midsize metro for racial minorities

Press release from Lattice Publishing:

Protests and civil unrest throughout 2020 and into 2021 have brought renewed attention to issues of racial injustice in the United States. While the current wave of activism has primarily focused on systemic racism in the criminal justice system, racial disparities are present throughout many aspects of American life, including—and especially—the economy.

For example, much has been written in recent years about the racial wealth gap, which is the phenomenon of White households possessing more accumulated wealth than their minority counterparts. By some estimates, the wealth of the median White family is 41 times greater than their Black counterparts and 22 times greater than their Hispanic counterparts.

The wealth gap is in large part a reflection of difficulties that racial and ethnic minorities face in the labor market. In the last three months of 2020, the White working-age population had an unemployment rate of 5.8%. In contrast, Asian (6.7%), Hispanic (8.7%), and Black (9.9%) workers each had an unemployment rate exceeding both the rate for White workers and the nationwide figure of 6.5%.

Racial disparities also show up in income. Median income data from 2019 broken down by race and gender indicates that both Asian and White workers out-earn their Black and Asian counterparts. Asian and non-Hispanic White men earn the most at $53,675 and $50,565, respectively. And while women earn less across all racial categories, White and Asian women report incomes roughly on par with Black and Hispanic men.

A combination of factors contributes to these disparities. Certainly inequitable hiring and compensation practices play a role, but other socioeconomic forces are also at play. One is differences in educational attainment. People of Asian descent and non-Hispanic Whites are more likely to have a college degree than Blacks and Hispanics, which strongly contributes to earning potential. Another related factor is racial concentration in industries and occupations. Blacks and Hispanics are more likely to hold jobs in lower-earning fields like agriculture, manufacturing, and social services and to be underrepresented in high-income industries like finance, law, or technology.

One of the most significant factors affecting pay for minority workers is geography. Minority wages can vary by state or city based on the location’s demographic characteristics, variables like the previously mentioned educational attainment levels and industry composition, and other systemic factors contributing to racial economic disparities.

At the state level, the top locations by cost-of-living-adjusted median earnings for full-time minority workers are all in the Mid-Atlantic and New England regions of the northeastern U.S, led by New Hampshire at $48,826. States on the lower end of the spectrum tend to be concentrated in the South and the Mountain West.

Locations with the highest earning potential for racial and ethnic minorities appear to show some combination of high educational attainment, high cost of living, and a strong presence of high-wage industries. This is as true for states as it is for metros, where well-educated, high-cost locations with good jobs, like the Bay Area, Seattle, and the D.C. and Baltimore metros, lead the rankings of the best-paying metropolitan areas for minorities.

To find these locations, researchers at Self used data from the U.S. Census Bureau and U.S. Bureau of Economic Analysis to find median earnings for full-time workers, adjusted for cost of living. For comparison, the researchers also calculated median earnings for all full-time workers and the concentration of minority residents.

The analysis found that in the Asheville metro area, the adjusted median earnings for minority workers is $31,016 per year, compared to the national median of $40,000. Out of all midsize U.S. metros, Asheville is the 2nd worst-paying for minorities.

Here is a summary of the data for the Asheville, NC metro area:

Median earnings for full-time minority workers (adjusted): $31,016
Median earnings for full-time minority workers (actual): $29,000
Median earnings for all full-time workers (actual): $40,000
Minority population share: 16.4%
Cost of living (compared to national average): -6.5%

For reference, here are the statistics for the entire United States:

Median earnings for full-time minority workers (adjusted): N/A
Median earnings for full-time minority workers (actual): $40,000
Median earnings for all full-time workers (actual): $49,500
Minority population share: 40.0%
Cost of living (compared to national average): N/A

For more information, a detailed methodology, and complete results, you can find the original report on Self Financial’s website: https://www.self.inc/blog/best-paying-cities-minorities