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    Ifeoma Ozoma Blew the Whistle on Pinterest. Now She Protects Whistle-Blowers.

    Ifeoma Ozoma, who accused Pinterest of discrimination, has become a key figure in helping tech employees disclose, and fight, mistreatment at work.Last month, Gov. Gavin Newsom of California signed a bill to expand protections for people who speak up about discrimination in the workplace.A new website arrived to offer tech workers advice on how to come forward about mistreatment by their employers.And Apple responded to a shareholder proposal that asked it to assess how it used confidentiality agreements in employee harassment and discrimination cases.The disparate developments had one thing — or, rather, a person — in common: Ifeoma Ozoma.Since last year, Ms. Ozoma, 29, a former employee of Pinterest, Facebook and Google, has emerged as a central figure among tech whistle-blowers. The Yale-educated daughter of Nigerian immigrants, she has supported and mentored tech workers who needed help speaking out, pushed for more legal protections for those employees and urged tech companies and their shareholders to change their whistle-blower policies.She helped inspire and pass the new California law, the Silenced No More Act, which prohibits companies from using nondisclosure agreements to squelch workers who speak up against discrimination in any form. Ms. Ozoma also released a website, The Tech Worker Handbook, which provides information on whether and how workers should blow the whistle.“It’s really sad to me that we still have such a lack of accountability within the tech industry that individuals have to do it” by speaking up, Ms. Ozoma said in an interview.Her efforts — which have alienated at least one ally along the way — are increasingly in the spotlight as restive tech employees take more action against their employers. Last month, Frances Haugen, a former Facebook employee, revealed that she had leaked thousands of internal documents about the social network’s harms. (Facebook has since renamed itself Meta.) Apple also recently faced employee unrest, with many workers voicing concerns about verbal abuse, sexual harassment, retaliation and discrimination.Connie Leyva, a California state senator, center, wrote the Silenced No More Act, which was signed into law last month.Chelsea Guglielmino/FilmMagic, via Getty ImagesMs. Ozoma is now focused on directly pushing tech companies to stop using nondisclosure agreements to prevent employees from speaking out about workplace discrimination. She has also met with activists and organizations that want to pass legislation similar to the Silenced No More Act elsewhere. And she is constantly in touch with other activist tech workers, including those who have organized against Google and Apple.Much of Ms. Ozoma’s work stems from experience. In June 2020, she and a colleague, Aerica Shimizu Banks, publicly accused their former employer, the virtual pinboard maker Pinterest, of racism and sexism. Pinterest initially denied the allegations but later apologized for its workplace culture. Its workers staged a walkout, and a former executive sued the company over gender discrimination.“It’s remarkable how Ifeoma has taken some very painful experiences, developed solutions for them and then built a movement around making those solutions a reality,” said John Tye, the founder of Whistleblower Aid, a nonprofit that provides legal support to whistle-blowers. He and Ms. Ozoma recently appeared on a webinar to educate people on whistle-blower rights.Meredith Whittaker, a former Google employee who helped organize a 2018 walkout over the company’s sexual harassment policy, added of Ms. Ozoma: “She has stuck around and worked to help others blow the whistle more safely.”Ms. Ozoma, who grew up in Anchorage and Raleigh, N.C., became an activist after a five-year career in the tech industry. A political science major, she moved to Washington, D.C., in 2015 to join Google in government relations. She then worked at Facebook in Silicon Valley on international policy.In 2018, Pinterest recruited Ms. Ozoma to its public policy team. There, she helped bring Ms. Banks on board. They spearheaded policy decisions including ending the promotion of anti-vaccination information and content related to plantation weddings on Pinterest, Ms. Ozoma said.Yet Ms. Ozoma and Ms. Banks said they faced unequal pay, racist comments and retaliation for raising complaints at Pinterest. They left the company in May 2020. A month later, during the Black Lives Matter protests, Pinterest posted a statement supporting its Black employees.Ms. Ozoma and Ms. Banks said Pinterest’s hypocrisy had pushed them to speak out. On Twitter, they disclosed their experiences as Black women at the company, with Ms. Ozoma declaring that Pinterest’s statement was “a joke.”In a statement, Pinterest said it had taken steps to increase diversity.By speaking out, Ms. Ozoma and Ms. Banks took a risk. That’s because they broke the nondisclosure agreements they had signed with Pinterest when they left the company. California law, which offered only partial protection, didn’t cover people speaking out about racial discrimination.Peter Rukin, their lawyer, said he had an idea: What if state law was expanded to ban nondisclosure agreements from preventing people speaking out on any workplace discrimination? Ms. Ozoma and Ms. Banks soon began working with a California state senator, Connie Leyva, a Democrat, on a bill to do just that. It was introduced in February.“I’m just so proud of these women for coming forward,” Ms. Levya said.Along the way, Ms. Ozoma and Ms. Banks fell out. Ms. Banks said she no longer spoke with Ms. Ozoma because Ms. Ozoma had recruited her to Pinterest without disclosing the discrimination there and then excluded her from working on the Silenced No More Act.“Ifeoma then cut me out of the initiative through gaslighting and bullying,” Ms. Banks said.Ms. Ozoma said she had not cut Ms. Banks out of the organizing. She added that Ms. Banks had “felt left out” because news coverage focused on Ms. Ozoma’s role.Understand the Facebook PapersCard 1 of 6A tech giant in trouble. More

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    Can Progress on Diversity Be Union-Made?

    Staring at the wall of glass clawing its way up the unfinished facade of the Winthrop Center in downtown Boston — 53 floors of commercial and residential space soaring 690 feet — Travis Watson isn’t interested in the grandeur of the thing. He wants to know who’s working on it.“It doesn’t pass the eye test,” he scoffs: In a city whose non-Hispanic white population has dwindled to 45 percent, it’s hard to see Black and brown faces on the site.He has more than his eyesight to go by. In 2018, Mayor Martin J. Walsh — now President Biden’s labor secretary — appointed Mr. Watson to lead the Boston Employment Commission, the body created to monitor compliance with the Boston Residents Jobs Policy. The policy mandates giving a minimum share of work to city residents, women and people of color on large private construction projects and those that are publicly funded.The latest version of the ordinance, from 2017, requires that Asian, Black and Latino workers get at least 40 percent of the work hours on sanctioned projects to better reflect the city’s demographics. (It also mandates that 51 percent of the hours go to city residents and 12 percent to women.) Mr. Watson complains that while many projects fail to meet the benchmarks, nobody is penalized.When the commission reviewed the Winthrop Center project in mid-September, when it was roughly halfway done, only 32 percent of the hours worked had gone to people of color. Other downtown projects have similar shortfalls. In September, even a project to renovate City Hall — the building where the targets were written and the Employment Commission meets — was shy of the mark.“We should be going higher,” Mr. Watson said. “This is a floor.”Boston is one of the nation’s most solidly Democratic cities. It just elected Michelle Wu, an outspoken progressive, as mayor by a resounding margin. She campaigned heavily on a promise to expand opportunities for minority businesses and to empower workers and communities of color with the sort of policy proposals that led to the creation of the Employment Commission — proposals aimed at ensuring that lucrative opportunities are fairly distributed. But the projects underway in Boston show how much harder it is to deliver on goals of racial equity than to set them.In Boston and beyond, building is one of the last American industries offering good jobs to workers without a college degree. The prospect of trillions of dollars of new federal funding for infrastructure projects under Mr. Biden’s Build Back Better program is raising hopes that roads, bridges, railways, wind farms, electric grids and water mains could provide millions of good construction jobs for a generation or more.What infuriates Mr. Watson is that, as he views it, unions for the building trades are the main impediment keeping people of color from building sites. He recalls one of his appearances before Boston’s City Council: “A councilor got up to say this is a union city,” he said. “For me, he was saying this is a white city, a city for white workers.”This tension has opened an uncomfortable rift between elements of the nation’s traditional Democratic coalition. Prominent advocates of racial equity push for Black and Hispanic contractors, whose operations are often small and nonunion but hire a lot of workers of color.Unions push back against the charges, sometimes forcefully, arguing that the growing number of apprentices of color indicates an embrace of diversity. In the first three months of this year, for example, nearly 30 percent of apprentices across the building trades in Massachusetts were nonwhite, up from 24 percent six years earlier.The unions also contend that nonunion contractors and their allies are cynically using a discussion of racial diversity to exploit workers.“The most vocal critics of our vigorous, intentional and ongoing efforts to improve our diversity, equity, and inclusion practices are often directly employed, funded, or formally aligned with nonunion special interest groups,” Renee Dozier, business agent of a Boston area local of the International Brotherhood of Electrical Workers, said in a statement. Many critics, she added, “have a direct profit motive to see wage and safety conditions watered down in one of America’s most dangerous industries, construction.”Mr. Watson shrugs off such criticism.The 38-year-old son of a white mother and a Black father, a graduate of Brandeis University with a major in African and African American studies, Mr. Watson is a former community organizer in the predominantly Black neighborhood of Roxbury and North Dorchester, south of downtown.He is employed as a director of racial equity and community engagement at the Massachusetts Housing Investment Corporation, a nonprofit group that offers financing for affordable housing and other community projects.He is deeply frustrated by what he views as the naked discrimination barring Black and Latino workers from the high-paying construction jobs that offer a path into the middle class. He is exasperated that unions generally won’t disclose the racial and ethnic mix of the workers in their halls — aside from apprentices, which they are obliged to report — and suggests that it is because the numbers would show their lack of diversity.He also grew frustrated by the inability of the Employment Commission to do anything about all this. As the law stands, he noted, contractors must only go through the motions to prove they are making an honest effort to comply.By last month, he had had enough. He resigned.Travis Watson, who resigned as the head of the Boston Employment Commission, views unions as the primary obstacle keeping people of color from building sites.The Pipeline IssueUnions for the building trades — laborers and electricians, plumbers and metalworkers — are largely to thank for ensuring that construction work is a middle-class job. The unions have bargained successfully for decent wages, and for health and pension benefits. They train workers and monitor safety conditions on building sites.Gatekeeping is also one of their functions, particularly in a union-friendly city like Boston. Unions run apprenticeships, which confer and certify the requisite skills, controlling the pipeline of workers into the profession.Who gets a job at downtown projects like the Winthrop Center or the City Hall renovation, where large unionized contractors and subcontractors do a vast majority of the work, is often decided in the union hall, which handles calls from contractors and makes assignments from a list of out-of-work journeymen and women.City data suggests that workers of color got 38 percent of the hours on projects subject to the ordinance last year. This year, between April and September, the share actually hit the target of 40 percent, it said. But there’s a stark difference in the jobs that whites and nonwhites get: Minority workers in 2020 did 76 percent of the work removing asbestos, where the mandated base wage set for projects like the City Hall renovation is usually around $40 an hour. By contrast, they got only 22 percent of the plumber hours, which pay around $60.“The pipeline issue is a real one, and I do think there’s a lack of diversity in the pipeline,” said Celina Barrios-Millner, the chief of equity and inclusion in Boston’s departing city government. “Any time you see outcomes that are so skewed, you have to understand there is discrimination somewhere down the line.”Some union officials acknowledge the issue. When the City Hall project came up for discussion at the Boston Employment Commission in May, Commissioner Charles Cofield, an organizer for the North Atlantic States Regional Council of Carpenters, which covers New York and New England, argued that “the main part of the pressure needs to go to the people supplying the manpower.” That means the business agents at the union locals.Elmer Castillo, an immigrant from Honduras who rose to be vice president of Local 723 of the carpenters’ union for a couple of years, has long experience with the ways of the building trades unions. “Unions are good if you know how to work with them,” he said. But equality of opportunity between white and minority workers? Mr. Castillo says, “That doesn’t exist.”Workers are supposed to be selected for a job based largely on how long they’ve been unemployed. But nepotism rules in the union hall, Mr. Castillo contends. Business agents trade favors with contractors. They will place their sons, cousins and nephews in the good jobs, and they will make sure that those sons, cousins and nephews follow them up the union ranks.“This builds a chain that never ends, a chain of whites,” Mr. Castillo said. “One will never have the opportunity to achieve what they achieve.”Craig Ransom, now the business manager at Local 346 of the carpenters’ union, offers his career as an example of the glass ceiling Black workers face. After rising to business manager at Local 723, he got stuck — blocked from what he says would be his natural progression to regional manager. “Unions are good for people that look like me,” Mr. Ransom said. “But at the very top level, there is no one that looks like me.”The conflict between white insiders and Black or Hispanic outsiders clamoring for an opportunity has bedeviled unions since the dawn of the labor movement. Even after the Civil Rights Act of 1964 ended officially sanctioned discrimination, race often trumped class solidarity. Many unions discriminated against workers of color, and many employers turned to workers of color to cross union picket lines.A few years later, President Richard M. Nixon leaned into the conflict between unions and African Americans, embracing the so-called Philadelphia Plan, which required federal contractors to prove they were hiring minority workers to match the ethnic composition of the area where work was being done. It would create “a political dilemma for the labor union leaders and civil rights groups,” said John Ehrlichman, a Nixon adviser, driving a wedge between two pillars of Democratic politics.“Unions are good for people that look like me,” said Craig Ransom, the business manager at Local 346 of the carpenters’ union. “But at the very top level, there is no one that looks like me.”Labor unions have come a long way since then. One reason is that far more workers of color are in the labor force, and many unions want to organize them, including the Service Employees International Union and UNITE HERE, which covers leisure and hospitality workers.The other reason is that organized labor doesn’t have the clout it once had. “The old bastions of exclusion with strong seniority systems that favored white workers have been decimated,” said Nelson Lichtenstein, a historian of labor at the University of California, Santa Barbara.In the fiscal year that ended Sept. 30, the Equal Employment Opportunity Commission reported fewer than 100 racial-discrimination complaints against unions, about one-third the number brought a decade before. “They don’t have the power they used to have in being involved in hiring,” said Gwendolyn Young Reams, the commission’s acting general counsel.Unions in the building trades remain something of an exception. They are strong, compared with other unions, and retain control over training and hiring, especially in public projects and the large, more heavily regulated construction in union-friendly urban areas. Nearly 13 percent of construction workers are unionized, about double the overall rate across private industries.‘Driving the Ship’Maven Construction is not a union contractor. It is an open shop, meaning it has not signed a deal to employ only union workers. Its founder and chief executive, JocCole Burton, a Black woman, knows that limits the kind of work she can do. But she also understands the cost of signing up with the unions.“Every single college or university in the region, every hospital and all public work requires union labor,” said Ms. Burton, who founded Maven in Atlanta and moved it to Boston four years ago. “Anything that is downtown and most work in the Boston metro is going to require union labor.”The exception is affordable-housing projects, which bring in nonunion contractors to keep costs down, Ms. Burton said. Still, open-shop contractors are mostly limited to smaller projects. “The largest project we’ve done is $35 million,” she said, with jobs worth $5 million to $10 million more typical.She is seeking to make Maven a “signatory” contractor, to have a shot at more lucrative work. But the arrangement is expensive: The benefits and other obligations add up, and they are hard to afford if you don’t have a steady stream of big projects.More problematic for Ms. Burton is that she expects unions to provide few workers of color. “The unions are in the business of making sure that the union halls get all the work, but they don’t have enough Black and brown bodies in their halls,” she said.Ms. Burton says she is shocked by what she sees as overt discrimination in such a liberal city. “The racism experienced 50 years ago in Atlanta is the same we see in Boston today,” she said. “It’s subtle — not as overt — but it is the same.” A crucial problem, she argues, “is the unions are driving the ship when it comes to equity.”Union officials contend that much of the criticism is unfair. A report from Local 103 of the International Brotherhood of Electrical Workers noted that while people of color made up only 4 percent of retired electricians drawing a pension in the last five years, they accounted for almost 30 percent of their apprentices, a testament to how much it has evolved.“There is no denying that unions in many industries, including construction, just like corporations in many industries, have a troubling past when it comes to diversity, equity and inclusion,” said Ms. Dozier, the business agent for Local 103. “But we are doing more every day to increase the diversity of our membership than almost any other industry — and frankly, it is unethical of the nonunion lobbyists and their mouthpieces to try and turn that important work into an excuse to further their own exploitative practices.”The site of the City Hall renovation project. In Boston and beyond, building is one of the last American industries offering good jobs to workers without a college degree. Mark Erlich, who retired in 2017 as executive secretary-treasurer of the New England Regional Council of Carpenters and is now a research fellow with the Labor and Worklife Program at Harvard Law School, argues that construction unions have become more welcoming to nonwhites in the last few decades.Mr. Erlich is one of the authors of a book addressing the history of racial exclusion in the building trades. He notes that the original Boston Residents Jobs Policy in 1983 came out of the fight by Black workers for jobs on building sites. But it had to include residents and women to gain white political support and overcome the opposition of union leadership.“There is a legacy of racism, which by no means has been eliminated,” Mr. Erlich said. “I respect folks in the community that complain that things are not changing fast enough. And they are not changing fast enough.” Still, he argues, unions realize that “they need to become less homogeneous and reflect the demographics of the city.”And he warns that the nonunion contractors that will hire workers of color do not generally provide training or a career path, as unions do. The work is often more dangerous, he says, and it pays nothing like the wages in union shops.The Limits of PatienceWorkers of color who make it into the unions acknowledge the opportunities that membership provides. On a sunny October afternoon in Dorchester, a roomful of apprentices and journeymen and women, assembled by Local 103 to talk to a reporter, lauded the union’s efforts to broaden its ranks and called for patience.“Diversity doesn’t happen overnight,” said Sam Quaratiello, a recent graduate of the apprenticeship program who is of Asian descent. Walter Cowhan, a Black journeyman, argued that the union had become far more diverse in his 20 years of experience. Still, he said, if workers of color are to become more prominent on job sites, training is essential. “If you don’t prepare the work force, directly bringing in Black and brown workers could undermine the whole process,” he said.But among some of those pushing for racial equity, patience is wearing thin. Mr. Watson offered the words of the Black author and activist James Baldwin: “You’ve always told me it takes time,” Mr. Baldwin said in the 1989 documentary “The Price of a Ticket.” “How much time do you want, for your progress?”The building unions are “huge obstacles” to that progress, said Angela Williams-Mitchell, who heads the Boston Jobs Coalition, a community organization dedicated to increasing opportunities for people of color. “They do not open their doors to create access for communities that have historically been excluded.”If they are so committed to diversity, she says, why do unions refuse to provide data on the share of minority journeymen and women, even as they disclose the racial and ethnic breakdown of apprentices? “Break it down for us so we know what needs to be done,” she urges.Unions remain essential to maintain construction’s track record of lifting workers up, Mr. Erlich says. He recalls one of Mr. Watson’s heroes, the late Chuck Turner, a community activist who fought to increase Black employment in the building trades. “He was the ultimate radical — his attitude was, let’s drive the unions into the sea,” Mr. Erlich said. “But he came around to the position that without unions, construction would become a low-wage job.”Mr. Watson, in fact, agrees. “Unions are great,” he said. “But they have to give us an opportunity.” More

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    Who Discriminates in Hiring? A New Study Can Tell.

    Applications seemingly from Black candidates got fewer replies than those evidently from white candidates. The method could point to specific companies.Twenty years ago, Kalisha White performed an experiment. A Marquette University graduate who is Black, she suspected that her application for a job as executive team leader at a Target in Wisconsin was being ignored because of her race. So she sent in another one, with a name (Sarah Brucker) more likely to make the candidate appear white.Though the fake résumé was not quite as accomplished as Ms. White’s, the alter ego scored an interview. Target ultimately paid over half a million dollars to settle a class-action lawsuit brought by the Equal Employment Opportunity Commission on behalf of Ms. White and a handful of other Black job applicants.Now a variation on her strategy could help expose racial discrimination in employment across the corporate landscape.Economists at the University of California, Berkeley, and the University of Chicago this week unveiled a vast discrimination audit of some of the largest U.S. companies. Starting in late 2019, they sent 83,000 fake job applications for entry-level positions at 108 companies — most of them in the top 100 of the Fortune 500 list, and some of their subsidiaries.Their insights can provide valuable evidence about violations of Black workers’ civil rights.The researchers — Patrick Kline and Christopher Walters of Berkeley and Evan K. Rose of Chicago — are not ready to reveal the names of companies on their list. But they plan to, once they expose the data to more statistical tests. Labor lawyers, the E.E.O.C. and maybe the companies themselves could do a lot with this information. (Dr. Kline said they had briefed the U.S. Labor Department on the general findings.)In the study, applicants’ characteristics — like age, sexual orientation, or work and school experience — varied at random. Names, however, were chosen purposefully to ensure applications came in pairs: one with a more distinctive white name — Jake or Molly, say — and the other with a similar background but a more distinctive Black name, like DeShawn or Imani.What the researchers found would probably not surprise Ms. White: On average, applications from candidates with a “Black name” get fewer callbacks than similar applications bearing a “white name.”This aligns with a paper published by two economists from the University of Chicago a couple of years after Ms. White’s tussle with Target: Respondents to help-wanted ads in Boston and Chicago had much better luck if their name was Emily or Greg than if it was Lakisha or Jamal. (Marianne Bertrand, one of the authors, testified as an expert witness in the trial over Ms. White’s discrimination claim.)This experimental approach with paired applications, some economists argue, offers a closer representation of racial discrimination in the work force than studies that seek to relate employment and wage gaps to other characteristics — such as educational attainment and skill — and treat discrimination as a residual, or what’s left after other differences are accounted for.The Berkeley and Chicago researchers found that discrimination isn’t uniform across the corporate landscape. Some companies discriminate little, responding similarly to applications by Molly and Latifa. Others show a measurable bias.All told, for every 1,000 applications received, the researchers found, white candidates got about 250 responses, compared with about 230 for Black candidates. But among one-fifth of companies, the average gap grew to 50 callbacks. Even allowing that some patterns of discrimination could be random, rather than the result of racism, they concluded that 23 companies from their selection were “very likely to be engaged in systemic discrimination against Black applicants.”There are 13 companies in automotive retailing and services in the Fortune 500 list. Five are among the 10 most discriminatory companies on the researchers’ list. Of the companies very likely to discriminate based on race, according to the findings, eight are federal contractors, which are bound by particularly stringent anti-discrimination rules and could lose their government contracts as a consequence.“Discriminatory behavior is clustered in particular firms,” the researchers wrote. “The identity of many of these firms can be deduced with high confidence.”The researchers also identified some overall patterns. For starters, discriminating companies tend to be less profitable, a finding consistent with the proposition by Gary Becker, who first studied discrimination in the workplace in the 1950s, that it is costly for firms to discriminate against productive workers.The study found no strong link between discrimination and geography: Applications for jobs in the South fared no worse than anywhere else. Retailers and restaurants and bars discriminate more than average. And employers with more centralized personnel operations handling job applications tend to discriminate less, suggesting that uniform rules and procedures across a company can help reduce racial biases.An early precedent for the paper published this week is a 1978 study that sent pairs of fake applications with similar qualifications but different photos, showing a white or a Black applicant. Interestingly, that study found some evidence of “reverse” discrimination against white applicants.More fake-résumé studies have followed in recent years. One found that recent Black college graduates get fewer callbacks from potential employers than white candidates with identical resumes. Another found that prospective employers treat Black graduates from elite universities about the same as white graduates of less selective institutions.One study reported that when employers in New York and New Jersey were barred from asking about job candidates’ criminal records, callbacks to Black candidates dropped significantly, relative to white job seekers, suggesting employers assumed Black candidates were more likely to have a record.What makes the new research valuable is that it shows regulators, courts and labor lawyers how large-scale auditing of hiring practices offers a method to monitor and police bias. “Our findings demonstrate that it is possible to identify individual firms responsible for a substantial share of racial discrimination while maintaining a tight limit on the expected number of false positives encountered,” the researchers wrote.Individual companies might even use the findings to reform their hiring practices.Dr. Kline of Berkeley said Jenny R. Yang, a former chief commissioner of the E.E.O.C. and the current director of the Office of Federal Contract Compliance Programs, which has jurisdiction over federal contractors, had been apprised of the findings and had expressed interest in the researchers’ technique. (A representative of the agency declined to comment or to make Ms. Yang available.)Similar tests have been performed since the 1980s to detect discrimination in housing by real estate agents and rental property owners. Tests in which white and nonwhite people inquire about the availability of housing suggest discrimination remains rampant.Deploying this approach in the labor market has proved a bit tougher. Last year, the New York City Commission on Human Rights performed tests to detect employment discrimination — whether by race, gender, age or any other protected class — at 2,356 shops. Still, “employment is always harder than housing,” said Sapna Raj, deputy commissioner of the law enforcement bureau at the agency, which enforces anti-discrimination regulations.“This could give us a deeper understanding,” Ms. Raj said of the study by the Berkeley and Chicago researchers. “What we would do is evaluate the information and look proactively at ways to address it.”The commission, she noted, could not take action based on the kind of statistics in the new study on their own. “There are so many things you have to look at before you can determine that it is discrimination,” she argued. Still, she suggested, statistical analysis could alert her to which employers it makes sense to look at.And that could ultimately convince corporations that discrimination is costly. “This is actionable evidence of illegal behavior by huge firms,” Dr. Walters of Berkeley said on Twitter in connection with the study’s release. “Modern statistical methods have the potential to help detect and redress civil rights violations.” More

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    Black Workers Stopped Making Progress on Pay. Is It Racism?

    William Spriggs, a professor at Howard University, wrote an open letter last year to his fellow economists. Reacting to the police killing of George Floyd in Minneapolis, he began the letter with a question: “Is now a teachable moment for economists?”Slamming what he saw as attempts to deny racial discrimination, Dr. Spriggs argued that economists should stop looking for a reason other than racism — some “omitted variable” — to account for why African Americans are falling further behind in the economy.“Hopefully, this moment will cause economists to reflect and rethink how we study racial disparities,” wrote Dr. Spriggs, who is Black. “Trapped in the dominant conversation, far too often African American economists find themselves having to prove that African Americans are equal.”After a year in which demands for racial justice acquired new resonance, Dr. Spriggs and others are pushing back against a strongly held tenet of economics: that differences in wages largely reflect differences in skill.While African Americans lag behind whites in educational attainment, that disparity has narrowed substantially over the last 40 years. Still, the wage gap hasn’t budged.In 2020, the typical full-time Black worker earned about 20 percent less than a typical full-time white worker. And Black men and women are far less likely than whites to have a job. So the median earnings for Black men in 2019 amounted to only 56 cents for every dollar earned by white men. The gap was wider than it was in 1970.Lost ProgressEarnings of Black men, as a percentage of the earnings of white men, are at the same place they were in the 1960s and 1970s. More

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    Banks Fight $4 Billion Debt Relief Plan for Black Farmers

    Lenders are pressuring the Agriculture Department to give them more money, saying quick repayments will cut into profits.WASHINGTON — The Biden administration’s efforts to provide $4 billion in debt relief to minority farmers is encountering stiff resistance from banks, which are complaining that the government initiative to pay off the loans of borrowers who have faced decades of financial discrimination will cut into their profits and hurt investors. More

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    Biden’s Proposals Aim to Give Sturdier Support to the Middle Class

    Perhaps the most striking difference between the middle class of 50 years ago and the middle class today is a loss of confidence — the confidence that you were doing better than your parents and that your children would do better than you.President Biden’s multitrillion-dollar suite of economic proposals is aiming to both reinforce and rebuild an American middle class that feels it has been standing on shifting ground. And it comes with an explicit message that the private sector alone cannot deliver on that dream and that the government has a central part to play.“When you look at periods of shared growth,” said Brian Deese, director of Mr. Biden’s National Economic Council, “what you see is that public investment has played an absolutely critical role, not to the exclusion of private investment and innovation, but in laying the foundation.”If the Biden administration gets its way, the reconstructed middle class would be built on a sturdier and much broader plank of government support rather than the vagaries of the market.Some proposals are meant to support parents who work: federal paid family and medical leave, more affordable child care, free prekindergarten classes. Others would use public investment to create jobs, in areas like clean energy, transportation and high-speed broadband. And a higher minimum wage would aim to buoy those in low-paid work, while free community college would improve skills.That presidents pitch their agendas to the middle class is not surprising given that nearly nine out of 10 Americans consider themselves members. The definition, of course, has always been a nebulous stew of cash, credentials and culture, relying on lifestyles and aspirations as much as on assets.But what cuts across an avalanche of studies, surveys and statistics over the last half century is that life in the middle class, once considered a guarantee of security and comfort, now often comes with a nagging sense of vulnerability.Salaries for teachers, hospital workers and child care providers are determined largely by the government, and do not necessarily reflect their value in an open market.Philip Keith for The New York TimesBefore the pandemic, unemployment was low and stocks soared. But for decades, workers have increasingly had to contend with low pay and sluggish wage growth, more erratic schedules, as well as a lack of sick days, parental leave and any kind of long-term security. At the same time, the cost of essentials like housing, health care and education have been gulping up a much larger portion of their incomes.The trend can be found in rich countries all over the world. “Every generation since the baby boom, has seen the middle-income group shrink and its economic influence weaken,” a 2019 report from the Organization for Economic Cooperation and Development concluded.In the United States, the proportion of adults in the middle bands of the income spectrum — which the Pew Research Center defines as roughly between $50,000 and $150,000 — declined to 51 percent in 2019 from 61 percent 50 years ago. Their share of the nation’s income shrank even more over the same period, to 42 percent from 62 percent.Their outlook dimmed, too. During the 1990s, Pew found rising optimism that the next generation would be better off financially than the current one, reaching a high of 55 percent in 1999. That figure dropped to 42 percent in 2019.The economy has produced enormous wealth over the last few decades, but much of it was channeled to a tiny cadre at the top. Two wage earners were needed to generate the kind of income that used to come in a single paycheck.“Upper-income households pulled away,” said Richard Fry, a senior economist at Pew.Corrosive inequality was just the beginning of what appeared to be a litany of glaring market failures like the inability to head off ruinous climate change or meet the enormous demand for affordable housing and health care. Companies often channeled profits to buy back stock instead of using them to invest or raise wages.The evidence was growing, liberal economists argued, that the reigning hands-off economic approach — low taxes on the wealthy, minimal government — was not producing the broad-based economic gains that sustained and grew the middle class.“The unregulated economy is not working for most Americans,” said Joseph Stiglitz, a Nobel laureate in economics. “The government has an important role,” he emphasized, in regulating the private sector’s excesses, redistributing income and making substantial public investments.Skeptics have warned of government overreach and the risk that deficit spending could ignite inflation, but Mr. Biden and his team of economic advisers have, nonetheless, embraced the approach.“It’s time to grow the economy from the bottom and middle out,” Mr. Biden said in his speech to a joint session of Congress last week, a reference to the idea that prosperity doesn’t trickle down from the wealthy, but flows out of a well-educated and well-paid middle class.He underscored the point by singling out workers as the dynamo powering the middle class.“Wall Street didn’t build this country,” he said. “The middle class built the country. And unions built the middle class.”Of course, the economy that lifted millions of postwar families into the middle class differed sharply from the current one. Manufacturing, construction and mining jobs, previously viewed as the backbone of the labor force, dwindled — as did the labor unions that aggressively fought for better wages and benefits. Now, only one out of every 10 workers is a union member, while roughly 80 percent of jobs in the United States are in the service sector.And it is these types of jobs, in health care, education, child care, disabled and senior care, that are expected to continue expanding at the quickest pace.Most of them, though, fall short of paying middle-income wages. That does not necessarily reflect their value in an open market. Salaries for teachers, hospital workers, lab technicians, child care providers and nursing home attendants are determined largely by the government, which collects tax dollars to pay their salaries and sets reimbursements rates for Medicare and other programs.They are also jobs that are filled by significant numbers of women, African-Americans, Latinos and Asians.“When we think about what is the right wage,” Mr. Stiglitz asked, “should we take advantage of discrimination against women and people of color, which is what we’ve done, or can we use this as the basis of building a middle class?”Mr. Biden’s spending plans — a $2.3 trillion infrastructure package called the American Jobs Plan, and a $1.8 trillion American Families Plan that concentrates on social spending — aim to take account of just how much the work force and the economy have transformed over the past half-century and where they may be headed in the next.The president’s economic team took inspiration from Franklin D. Roosevelt’s New Deal and the public programs that followed it.After World War II, for instance, the government helped millions of veterans get college educations and buy homes by offering tuition assistance and subsidized mortgages. It created a mammoth highway system to undergird commercial activity and funneled billions of dollars into research and development that was used later to develop smartphone technology, search engines, the human genome project, magnetic resonance imaging, hybrid corn and supercomputers.Mr. Biden, too, wants to fix roads and bridges, upgrade electric grids and invest in research. But his administration has also concluded that a 21st-century economy requires much more, from expanded access to high-speed broadband, which more than a third of rural inhabitants lack, to parental leave and higher wages for child care workers.The basic necessities that make it possible for parents to fully participate in the work force, like child care and parental leave, are still missing, said Betsey Stevenson, an economics professor.Gabriela Bhaskar for The New York Times“We’ve now had 50 years of the revolution of women entering the labor force,” and the most basic necessities that make it possible for parents to fully participate in the work force are still missing, said Betsey Stevenson, a professor at the University of Michigan and a former member of the Obama administration’s Council of Economic Advisers. She paused a few moments to take it in: “It’s absolutely stunning.”Right before the pandemic, more women than men could be found in paying jobs.Ensuring equal opportunity, Ms. Stevenson noted, includes “the opportunity to get high-quality early-childhood education, the opportunity to have a parent stay home with you when you’re sick, the opportunity for a parent to bond with you when born.”When it comes to offering this type of support, she added, “the United States is an outlier compared to almost every industrialized country.”The administration also has an eye on how federal education, housing and business programs of earlier eras largely excluded women, African-Americans, Asians and others.In the Biden plan are aid for colleges that primarily serve nonwhite students, free community college for all, universal prekindergarten and monthly child payments.“This is not a 1930s model any more,” said Julian E. Zelizer, a political science professor at Princeton University.And it’s all to be paid for by higher taxes on corporations and the top 1 percent.Passage in a sharply polarized Congress is anything but assured. The multitrillion-dollar price tag and the prospect of an activist government have ensured the opposition of Republicans in a Senate where Democrats have the slimmest possible majority.But public polling from last year showed widening support for the government to take a larger role.“What is so remarkable about this moment is this notion that public investment can transform America, that these are things government can do,” said Felicia Wong, president of the left-leaning Roosevelt Institute. “This is fundamentally restructuring how the economy works.”The middle class today differs in significant ways from the middle class of 50 years ago and perhaps the most striking is a loss of confidence.Evan Jenkins for The New York Times More

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    Beyond Pandemic’s Upheaval, a Racial Wealth Gap Endures

    Billions in aid has been dispensed, and the social safety net has been reinforced. Will there be more ambitious steps to address longtime inequities?Not since Lyndon Baines Johnson’s momentous civil rights and anti-poverty legislation has an American president so pointedly put racial and economic equity at the center of his agenda.President Biden’s multitrillion-dollar initiatives to rebuild infrastructure in neglected and segregated neighborhoods, increase wages for health care workers, expand the safety net and make pre-K and college more accessible are all shot through with attention to the particular economic disadvantages that face racial minorities. So were his sweeping pandemic relief bill and Inauguration Day executive orders.Yet as ambitious as such efforts are, academic experts and some policymakers say still more will be needed to repair one of the most stubborn and invidious inequalities: the gap in wealth between Black and white Americans.Wealth — one’s total assets — is the most meaningful measure of financial strength. Yet for every dollar a typical white household has, a Black one has 12 cents, a divide that has grown over the last half-century. Latinos have 21 cents for every dollar in white wealth.Such disparities drag down the American economy as a whole. A study by McKinsey & Company found that consumption and investment lost because of that gap cost the U.S. economy $1 trillion to $1.5 trillion over 10 years, or 4 to 6 percent of the projected gross domestic product in 2028.Mr. Biden started talking about the wealth divide on the campaign trail, calling on the Federal Reserve to take on a new role and “aggressively target persistent racial gaps in jobs, wages and wealth.”Vice President Kamala Harris and several Democratic senators have supported proposals targeted specifically at the gap — from increasing Black homeownership to establishing trust accounts for newborns (“baby bonds”). And senior economic advisers who have joined the Biden team, including Cecilia Rouse and Jared Bernstein, have talked about the need for programs that attack structural inequities, noting that disparities in income over time create more entrenched gaps in wealth.Heather Boushey, a member of the White House Council of Economic Advisers, said the president’s proposals were intended to work together to make sure that unexpected or temporary economic jolts — like the loss of a job — didn’t snowball into a disastrous tumble.“No one thing alone is going to check the box to close the wealth gap, but the combination of all these things together will make real progress,” said Ms. Boushey, who has written frequently about the issue.Government support is crucial, economists say, because there is so little that individuals can do on their own to close the wealth gap. The most surprising finding that researchers at the Federal Reserve Bank of St. Louis established after a decade-long study of inequality and financial vulnerability was that no matter what financial decisions you make or schools you attend, roughly 80 percent of those yawning disparities are determined by your skin color, the year you were born and your gender.Median wealth of Black, Hispanic and white households

    Note: Figures adjusted for inflationSource: Federal Reserve Bank of St. LouisThe New York Times“There’s a lot you don’t control,” said Ray Boshara, who headed the research effort. “These larger forces really have an impact on your ability to accumulate wealth.”Imagine playing a game of Monopoly with a set of rigged rules. Your opponent gets $2,000 in cash, rolls with two dice at every turn, and earns $200 every time he circles the board and passes “Go.” You, by contrast, begin with only $1,000, roll with a single die and earn $100 at “Go.”At the game’s end, you can hand off whatever cash and property you’ve accumulated to a friend or family member, and the next round just continues.The rigged game helps explain the origins of the wealth gap. The heavy hand of a history studded by intimidation and terrifying violence, segregation and unfair housing, zoning and lending policies has prevented generations of Black families from gathering assets.In the 19th century, when the government distributed the country’s most realizable asset — land — during the Homestead Act, African-Americans were left out. In the 20th century, when the focus shifted to building a berth in the middle class through homeownership, African-Americans were again largely excluded from federal mortgage loan support programs and the G.I. Bill of Rights. Tax policies, in turn, favored the wealth-building strategies that were offered to whites.Even New Deal assistance programs like unemployment insurance that were created to help people survive the Depression excluded agricultural and domestic workers, who were overwhelmingly Black.Again and again, African-Americans were shut off from the capital that makes capitalism work.“That’s how we built the racial wealth gap,” said William A. Darity Jr., an economics professor at the Sanford School of Public Policy at Duke University. “Unless you have a comparable program focused on building Black wealth, you’re not going to do much about it.”Unequal outcomes in one generation turn into unequal opportunities in the next. Without assets, Black parents cannot offer as much financial support to help pay for their children’s education, first home or efforts to start a small business.Black graduates, for example, have to take out bigger loans to cover college costs, compelling them to start out in more debt — on average $25,000 more — than their white counterparts.Recognizing an uneven playing field is not as obvious as it might seem. The lopsided Monopoly rules were developed by social scientists at the University of California, Berkeley, nearly a decade ago as part of an experiment on money’s effect on human behavior.They found that winners consistently credited their hard-earned skills and smarts for their success rather than a skewed playing field.Research shows that outside forces prevent Black workers who are just as talented and hardworking from achieving the same success as their white peers.Harold M. Lambert/Getty ImagesThat all-too-human response clouds thinking about inequality, said Paul Piff, who led the research team and is now a psychologist at the University of California, Irvine.Americans, much more than people from other countries, interpret “their advantages in terms of things they themselves have earned or deserved as opposed to thinking it’s the result of an unfair world,” Professor Piff said. “Then the inequalities you’re seeing aren’t unfair, they’re just necessary outcomes of things that people did or didn’t do,” he said, so you are less willing to do anything about them.Mr. Boshara at the St. Louis Fed said the implications were particularly pertinent in thinking about the racial wealth gap.“People feel they’ve earned everything they have, but the evidence just doesn’t support that,” said Mr. Boshara, who is helping to lead a follow-up research initiative at the bank, the Institute for Economic Equity. “It counters the American narrative that everybody who has something made it on their own.”Challenging shibboleths about hard work and personal responsibility can meet resistance. People often take immediate offense, interpreting the argument as detracting from their own demonstrable hard work, skills and talent. What the research highlights, though, are the outside forces that prevent other individuals who are just as talented and hardworking from achieving the same success.The same house in a Black neighborhood will fetch less money than it would in a white one. A Black worker with the same credentials as a white colleague will earn less. Even among college graduates, the Black jobless rate tends to be twice as high as the rate for whites. Such inequities operate like an invisible tax on African-Americans, a tax on being Black.The pandemic has underscored how crushing unpredictable and uncontrollable twists in circumstances can be. When Congress approved the $1.9 trillion relief plan, Mr. Biden pointed out that millions of Americans were jobless and lining up at food banks “through no fault of their own.”“I want to emphasize that,” he added. “Through no fault of their own.”The pandemic has hit African-Americans and Latinos hardest on all fronts, with higher infection and death rates, more job losses, and more business closures.Proposals that confront the wealth gap head on, though, are both expensive and politically charged.Professor Darity of Duke, a co-author of “From Here to Equality: Reparations for Black Americans in the Twenty-First Century,” has argued that compensating the descendants of Black slaves — who helped build the nation’s wealth but were barred from sharing it — would be the most direct and effective way to reduce the racial wealth gap.Vice President Harris and Senators Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts and Cory Booker of New Jersey have tended to push for asset-building policies that have more popular support. They have offered programs to increase Black homeownership, reduce student debt, supplement retirement accounts and establish “baby bonds” with government contributions tied to family income.With these accounts, recipients could build up money over time that could be used to cover college tuition, start a business or help in retirement.Several states have experimented with small-scale programs meant to encourage children to go to college. Though those programs were not created to close the racial wealth gap, researchers have seen positive side effects. In Oklahoma, child development accounts seeded with $1,000 were created in 2007 for a group of newborns.“We have very clear evidence that if we create an account of birth for everyone and provide a little more resources to people at the bottom, then all these babies accumulate assets,” said Michael Sherraden, founding director of the Center for Social Development at Washington University in St. Louis, which is running the Oklahoma experiment. “Kids of color accumulate assets as fast as white kids.”Without dedicated funds — the kind of programs that enabled white families to build assets — it won’t be possible for African-Americans to bridge the wealth gap, said Mehrsa Baradaran, a law professor at the University of California, Irvine, and the author of “The Color of Money: Black Banks and the Racial Wealth Gap.”She paraphrased a 1968 presidential campaign slogan of Hubert Humphrey’s: “You can’t have Black capitalism without capital.” More

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    The Obstacles to Reporting on Black Representation in Fashion

    Times journalists asked leading companies about the racial makeup of their work forces. The responses, or the lack of them, were revealing. Here, the reporters discuss what they found.Leaders in the fashion world have pledged to address racism in their business. But to determine whether anything is improving, reporters for The New York Times felt they needed a concrete set of data about the current state of Black representation in the industry.Reporters asked prominent brands, stores and publications to provide information about the number of Black employees and executives in their ranks — including those who design, make and sell products; walk runways; appear in ad campaigns and on magazine covers; and sit on corporate boards. But of the 64 companies contacted, only four responded fully to a short set of questions.In a recent article, a team of reporters published the responses from the companies, along with personal comments from Black stylists, editors and publicists. Below is an edited conversation with those journalists: Vanessa Friedman, Salamishah Tillet, Elizabeth Paton, Jessica Testa and Evan Nicole Brown.What was the biggest challenge in telling this story?VANESSA FRIEDMAN The absolute lack of consistency. You’re dealing with global organizations that speak to a variety of markets, tapping into a whole bunch of different kinds of cultural areas. They’re headquartered in different countries with different demographics, different histories, different issues with racism and different laws. We had one set of very simple questions, less than 10, that felt like the most basic, obvious things everyone could answer. But only four companies out of 64 answered completely.When did you realize the inability to answer the questions was the story?FRIEDMAN You write what you find, and we felt that it was important to get across that if you have that level of chaos in the basic information, until you can make that into a clearer picture, you can’t actually know when progress is happening.Why weren’t the companies able to answer these questions?ELIZABETH PATON Every company had its own reservations and issues and reasons. I think, to a degree, it had to do with culture. For example, how the Italian brands perceived what we were trying to do was different than the Americans. I mean, legal reasons were part of it, but the American companies notably provided more information than the European companies did. I actually think that America is in a slightly different place in its conversation about race at the moment.JESSICA TESTA It was almost surprising how reluctant some of the magazines were about participating because their numbers were the ones that were actually going to reflect well on them. I do feel like we were getting resistance from all sides, but one thing we did hear was, “I’ll be interested in participating next time.”What has the response been like to the story?PATON The majority of brands do understand the work that we’re doing, even if they found the questions really uncomfortable. A couple of brands were disappointed that their efforts were not more recognized, even if they hadn’t given us full answers. I haven’t heard any brand telling us that we made a mistake in trying to undertake this project. They recognize they need this scrutiny to change.You also interviewed people about their experience working in the industry. What did you take away from that?EVAN NICOLE BROWN It was important to me to find the intersections, but also the differences, in what Black professionals in this space felt. Sometimes people in the past have been asked to comment on things, and there has been a fear that might work against them, or their concerns would be misunderstood, but I feel like this project did a really good job at making people feel comfortable to speak. I think that this platform was appreciated, and it felt like there was no fear in terms of just sharing those really honest experiences, which definitely helped the piece and helped confirm the data or lack thereof.What questions remain really interesting to you?SALAMISHAH TILLET For me, how do you continue to diversify the leadership at the top? And then what are the structures and what are the assumptions that happen in those spaces that prevent that leadership from becoming more and more diverse? Because we would like to continue to change all aspects of the industry and all levers of the industry, but if the top remains monolithic, then really they’re the ones who are determining how the other aspects of the industry are also changing alongside it.BROWN I was really interested in the tension of where classism comes up in this conversation as it relates to representation. Even if representation in the fashion industry improves on the race front, there’s still work to be done on the socioeconomic front. Through this reporting, that was illuminated more for me — which communities are being reached and what the ideal consumer is for so many of these places we’re discussing.What do you want readers to take away?FRIEDMAN I think we learned a lot about where the sticking points are and the need for a clear picture of what is going on. You cannot move forward until you know where you are. And it is just time for us all to know where we are with this industry. More