Race and the Manufacturing Workforce: Opportunities to Expand Growth and Equity in a Rebounding Industry Sector
The U.S. manufacturing sector has long been a cornerstone of economic opportunity, but persistent racial and gender disparities continue to undermine its potential for equitable growth. Amid efforts to revitalize American manufacturing, researchers Benjamin Armstrong, Matthew D. Wilson, and Nichola Lowe explore the historical and structural inequities within the industry, emphasizing the need for targeted policy interventions to address wage gaps and occupational segregation. Their analysis highlights the opportunities and challenges of leveraging manufacturing’s rebound to promote inclusive economic development.
Key Insights:
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Historical Advantages and Decline: During the 1960s and 1970s, manufacturing jobs provided higher wages for Black workers compared to other sectors, particularly in the Midwest. This advantage diminished sharply between 1980 and 2010 due to manufacturing employment declines and wage premium reductions.
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Persistent Wage Gaps: Even after controlling for factors like education and experience, significant wage disparities persist across racial and gender lines, with Black and Latino workers earning less than their white counterparts for similar roles.
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Recent Improvements: From 2010 to 2020, wage premiums for Black and Latino manufacturing workers increased, especially in the Midwest, signaling potential pathways for reducing income inequality.
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Occupational Segregation: Racial minorities remain underrepresented in higher-paying manufacturing roles, with structural barriers limiting their upward mobility within the industry.
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Policy Implications: The research advocates for inclusive investments and policies to address wage and occupational disparities, leveraging manufacturing growth to build a more equitable middle class.
The study emphasizes the need for systemic approaches to workforce equity, combining historical insights with modern strategies to ensure manufacturing’s resurgence benefits all communities.
Publication
People
Associate Director of Economic & Workforce Development, UIC Great Cities Institute