Despite strides, California Latinas face persistent economic disparity, study finds

Despite strides, economic disparities persist among Latinas statewide, according to a new report issued Thursday that found Hispanic women earn only 42 cents for every dollar paid to white men compared to 71 cents for white women.

The report by Los Angeles-based Hispanas Organized for Political Equality (HOPE) illustrates Latina progress and underscores the barriers hindering their path to a better quality of life and financial security. By examining national, state, and regional indicators, HOPE’s survey aims to offer insights into the economic, leadership, health, and educational landscape of Latinas in California, juxtaposed against their white counterparts.

California has the largest Latino population in the nation, with Latinas comprising 20% of the state’s total population and 40% of all women, according to the fourth installment of HOPE’s Economic Status of Latinas in California report.

While the Latino homeownership rate statewide increased by 3 percentage points between 2021 and 2022, only 41% of such households have retirement accounts compared to 68% of white households. But the report found education rates were on an upswing. In 2022, over 18% of Latinas aged 25 and older throughout the state had obtained at least a bachelor’s degree, a significant increase from 14.9% in 2018.

In terms of business and financial literacy, the report determined that entrepreneurial spirit thrives among Latinas, with a 23% increase in Latina-owned employer businesses between 2018 and 2021, generating nearly 147,000 jobs with an annual payroll of $5.92 billion. However, interviews suggest a crucial need for improved financial literacy to navigate the state’s high cost of living and ensure sustainable growth.

While education rates among Latinas are rising, challenges remain. Graduation rates and access to advanced placement courses still trail behind those of white students. In 2022, over 18% of Latinas aged 25 and older statewide had obtained at least a bachelor’s degree, showing a positive trend compared to 2018, but significantly lower than the nearly 48% rate for white women.

Health disparities were exacerbated by the COVID-19 pandemic, according to HOPE. Life expectancy at birth declined by 4.1 years for Latinas and 3.1 years for Black women between 2019 and 2021, compared to 1.8 years for white, non-Hispanic women. Latinas and Black women faced disproportionate impacts, with higher mortality rates and disparities in maternal care.

The report also found that the uninsured rate for Latinas in California was at a historic low of 8.8% in 2022, compared to the total rate of 6.5%, but both are expected to rise as pandemic-era policies expire.

Despite a doubling in Latina representation on California corporate boards between 2020 and 2021, Latinas held only 3.3% of board seats last year, HOPE said. In government board and commission appointments made by Gov. Gavin Newsom, Latinas made up 9% of all appointments in 2023.

Although there’s been a significant increase in Latina representation in statewide office since 2015, with Latinas representing 25% of the state legislature, the presence of Latinas in national office remains low, with only four Latina congressional members out of 52 U.S. House of Representatives seats filled by Californians.

“This report underscores the urgency of addressing the persistent economic disparities faced by Latinas in California,” HOPE CEO Helen Torres said. “By acknowledging these challenges and working together to implement equitable solutions, we can create a more inclusive society where every Latina has the opportunity to thrive.”

The report will be the central topic of discussion at an informational hearing for the State Assembly’s Select Committee on Latina Inequities, chaired by Assemblywoman Wendy Carrillo, at the State Capitol on May 8.

“I am deeply grateful to HOPE for its tireless dedication to shining light on the challenges that Latinas face in California,” Carrillo said in a statement. “Latinas are the economic engine of our state and the largest majority, yet we face some of the deepest inequities when it comes to economic, educational and health outcomes and we are severely underrepresented in various sectors from c-suite (senior executives), public office, and executive leadership roles.”

To prepare the report, HOPE analyzed data from various government sources, including the U.S. Census Bureau and Bureau of Labor Statistics, to compare demographic and economic metrics of Latinas with other groups nationally, statewide, and regionally. Additional data from reports and interviews with Latina women from diverse regions, work sectors, and age groups were conducted to contextualize the data and gain insights into supporting their economic advancement and career trajectories, according to the Latina advocacy organization.