9.1 The gendered and racialized dimensions of poverty and economic inequality

Economic inequality intersects deeply with gender and race. Women and racial minorities face higher poverty rates, wage gaps, and barriers to wealth accumulation. These disparities stem from historical discrimination, unequal access to education and financial services, and persistent social norms.

Addressing these issues requires tackling systemic barriers. Policies like affirmative action, pay transparency, and targeted economic empowerment programs show promise. However, progress remains slow, highlighting the need for continued efforts to create more equitable economic systems.

Gender, Race, and Economic Inequality

Intersectionality and Economic Disparities

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• Intersectionality theory explains how multiple social categories (gender, race, class) interact to create unique experiences of privilege or oppression
  • Example: A low-income Black woman faces compounded challenges compared to a middle-class white woman
• "Feminization of poverty" highlights disproportionate representation of women among global poor, particularly in female-headed households
  • Statistics: Women make up approximately 70% of the world's poor
• Racial wealth gaps persist across generations due to historical discrimination, unequal education access, and inherited wealth disparities
  • Example: In the US, the median white family has about 10 times the wealth of the median Black family
• Gender and racial discrimination in employment contributes to wage gaps and occupational segregation
  • Wage gap example: Women earn about 82 cents for every dollar earned by men in the US
• Access to financial services (credit, banking) often restricted for women and racial minorities
  • Impact: Limits ability to accumulate wealth and invest in businesses
  • Example: Women-owned businesses receive only about 4% of commercial loan dollars
• Cultural and social norms regarding gender roles and racial stereotypes influence educational and career choices
  • Example: STEM fields historically dominated by men, leading to long-term economic disparities

Economic Mobility Barriers

• Global statistics show higher poverty rates among women compared to men
  • Single mothers and elderly women at particular risk
  • Example: In the EU, 22.3% of women over 75 are at risk of poverty compared to 15.7% of men
• Racial minorities experience poverty at significantly higher rates than majority populations
  • Reflects historical and ongoing systemic inequalities
  • Example: In the US, poverty rates for Black (18.8%) and Hispanic (15.7%) populations are higher than for white populations (7.3%)
• "Double burden" of unpaid care work and paid employment disproportionately affects women in poverty
  • Limits economic opportunities and career advancement
  • Example: Women spend an average of 4.1 hours per day on unpaid care work compared to 1.7 hours for men
• Health disparities linked to poverty more pronounced among racial minorities
  • Impacts life expectancy and quality of life
  • Example: In the US, Black Americans have a life expectancy 3.6 years shorter than white Americans
• Educational attainment gaps between racial groups contribute to perpetuating poverty cycles
  • Example: In the US, high school graduation rates for Black (80%) and Hispanic (82%) students lag behind white students (89%)
• Women and racial minorities overrepresented in low-wage, precarious employment sectors
  • Increases vulnerability to economic shocks
  • Example: Women make up 63% of workers earning federal minimum wage or less in the US
• Intersectional identities (woman of color) often compound poverty risks and experiences
  • Example: In the US, Black women experience a larger wage gap (63 cents to the dollar) compared to white women (79 cents)

Systemic Barriers to Economic Equality

Structural Inequalities

• Housing policies (historical redlining) led to segregation and unequal property values
  • Affects wealth accumulation for racial minorities
  • Example: In the US, homes in historically redlined areas are valued at $212,000 less on average than non-redlined areas
• Gender biases in inheritance laws limit women's access to land and property ownership
  • Example: In 40% of countries, sons and daughters do not have equal inheritance rights
• Educational systems reproduce social inequalities through unequal funding and biased practices
  • Unequal school funding
  • Tracking systems that disproportionately place minorities in lower academic tracks
  • Culturally biased curricula and assessments
  • Example: In the US, predominantly white school districts receive $23 billion more in funding than non-white districts
• Occupational segregation concentrates women and minorities in lower-paying sectors
  • Contributes to persistent wage gaps
  • Example: Women make up 94% of childcare workers but only 27% of chief executives in the US
• Lack of affordable childcare disproportionately impacts women's labor force participation
  • Hinders career advancement opportunities
  • Example: In OECD countries, mothers with children under 15 have employment rates about 10 percentage points lower than women without children

Financial and Legal Barriers

• Discriminatory lending practices create barriers to entrepreneurship and homeownership
  • Higher interest rates for minorities
  • Example: Black-owned businesses are twice as likely to be rejected for loans compared to white-owned businesses
• Criminal justice system biases create long-term economic disadvantages for racial minorities
  • Higher incarceration rates reduce employment opportunities
  • Example: In the US, Black men are 6 times more likely to be incarcerated than white men
• Lack of representation in policymaking positions perpetuates systemic inequalities
  • Example: Women hold only 26.1% of parliamentary seats globally
• Digital divide limits access to online education and job opportunities for low-income and rural populations
  • Example: In the US, 35% of low-income households lack high-speed internet access
• Informal economy participation leaves many women and minorities without labor protections or benefits
  • Example: Globally, 58% of women who work are in the informal economy

Policy Effectiveness for Gendered and Racialized Poverty

Education and Employment Initiatives

• Affirmative action and diversity initiatives in education and employment show mixed results
  • Some improvements in representation but persistent gaps remain
  • Example: US colleges using race-conscious admissions have seen a 30% increase in minority enrollment
• Initiatives to increase representation of women and minorities in STEM fields aim to address occupational segregation
  • Programs include mentorship, scholarships, and targeted recruitment
  • Example: Girls Who Code program has reached 450,000 girls, with 50% from underrepresented groups
• Pay transparency policies emerge as strategies to address gender and racial wage gaps
  • Prohibiting salary history inquiries
  • Requiring companies to report pay data
  • Example: UK's gender pay gap reporting requirement led to a 19% reduction in the pay gap for affected companies

Economic Empowerment Programs

• Microfinance programs targeting women demonstrate some success in poverty alleviation
  • Face criticisms regarding high interest rates and potential debt cycles
  • Example: Grameen Bank in Bangladesh has provided microloans to over 9 million borrowers, 97% of whom are women
• Gender-responsive budgeting initiatives aim to allocate resources more equitably
  • Implementation and effectiveness vary across contexts
  • Example: Austria's gender budgeting approach led to increased funding for domestic violence prevention
• Social safety net programs show positive impacts on reducing poverty
  • Conditional cash transfers particularly effective for women-headed households
  • Example: Brazil's Bolsa Família program reduced extreme poverty by 25-50%
• Universal childcare policies demonstrate potential to increase women's labor force participation
  • Reduce gender-based economic inequalities
  • Example: Quebec's low-fee childcare program increased mothers' labor force participation by 13 percentage points
• Entrepreneurship support programs target underrepresented groups
  • Provide training, mentorship, and access to capital
  • Example: US Small Business Administration's 8(a) Business Development program has helped disadvantaged businesses secure over $100 billion in federal contracts