Report: Policies boosting race equity in Maine would add jobs, income
Courtesy / Maine Center for Economic Policy
A Maine Center for Economic Police report published this week says that eliminating racial discrimination in the state workforce would add jobs and boost the state's economy.
Maine policies that advance race equity and undo racism in employment would boost the state's economy, adding millions of dollars in economic activity and thousands of jobs, claims a report released Thursday by the Maine Center for Economic Policy.
The State of Working Maine 2020 points to untapped economic opportunities from closing the racial hiring gap in Maine, and also concludes that systemic racism in hiring keeps workers of color from achieving their full income potential. That has ripple effects into housing, health care and more. Many people of color in Maine also work at jobs where they're more likely to be underpaid and not eligible for overtime and other income boosts.
The report, which drew information from dozens of government sources and other studies, offers recommendations for solutions that range from increasing resources for minority populations in the state, to establishing best practices to guide hiring and housing policy.
"By nearly every measure, Maine’s economy works better for white families than for families of color," says the report by MECEP economic policy analyst James Myall. "Generations of discrimination and policy choices that perpetuate inequality have resulted in an economy where it’s harder for Mainers of color to get a job, be paid fairly, and realize their full potential.
"These barriers pump the brakes on economic advancement for people of color, but they also take gas out of the tank for Maine’s economy."
In a news release accompanying the report, Myall said, “Every Mainer deserves a fair chance to contribute and participate fully in our economy, regardless of race. But today, racial disparities mean people of color in Maine are less likely to get a job, much less a job suited to their education level or that pays wages comparable to what their white colleagues earn.
"Policies that prioritize race equity will help us live up to our basic ideas of fairness, but they will also strengthen Maine’s economy by raising incomes, increasing productivity and creating jobs."
Garrett Martin, MECEP executive director said that solutions for race equity can be a "critical piece of the puzzle" as policymakers look to shape a recovery from the pandemic recession.
"Ensuring every Mainer can participate and achieve their full potential in our economy, regardless of race, will boost individual workers and families and pay dividends for our economy for generations to come," he said.
Numbers tell inequality story
Myall's report examines the way racial disparities are holding Maine back and how policies to advance race equity would build a fairer, stronger economy for all Mainers. While no one policy will single-handedly achieve equity, the disparities are the result of policy choices and can be undone by policy reforms, the report says.
By closing Maine's racial income gap, the study found:
- $450 million in additional household income could be generated;
- $519 million in new economic activity could be generated;
- 4,000 jobs in Maine would be created by increased economic activity;
- Annual earnings would increase by $47 million.
It also found:
- Black immigrant, American Indian and Southeast Asian Mainers are twice as likely to hold jobs for which they are overqualified, compared to white Mainers. This means they earn less than they should be, and prevents them from using the full extent of their skills and education.
- People of color in Maine are 1.6 times more likely to work in industries with fewer worker income protections, such as minimum wage, overtime rights and protection against wage theft, compared to white Mainers. Guaranteeing equal protection for all workers, regardless of industry, would boost annual earnings by roughly $2,500 for every affected worker.
Maine roots of inequality go way back
The roots of racial disparities in Maine include state and federal policy decisions that created and perpetuated inequality in employment and income, Mayall said. For instance, the decision to exempt jobs traditionally held by people of color from labor standards such as the minimum wage and policies that robbed indigenous communities of wealth and resources for generations.
Myall writes that the modern concept of race was developed early, before the country was even the United States, to justify enslaving Africans and dispossessing land that was home to American Indians.
"Americans’ views on race and definitions of racial groups have shifted over time to suit various political and economic agendas," the report said. "As a result, the effects of racism are very real and have deep historical roots."
The report traces the state's relationships with the Wabanaki people — Maine's indigenous tribes — as well as Black, Latino, Southeast Asian and other ethnic groups. It posits that to find solutions to the systemic racism that a variety of ethnic groups in the state are subject to, all Mainers must understand the history of the racism.
Recommendations for race equity
The report includes several recommendations to help achieve race equity.
One major one is increased resources for people of color, which would require "purposeful funding decisions in areas such as education and job training."
Recommendations also include policies to empower individuals and communities. "Policies to realize the sovereignty of Maine’s tribes, facilitate the formation of labor unions and increase representation in all levels of politics will ensure people of color have the power and standing to craft and implement solutions to reduce inequity," the report says.
The state government, one of Maine's largest employers with nearly 11,000 workers, could also adopt best practices to reduce racial disparity on the job.
"State government must lead by example in creating a workplace that is inclusive and welcoming," the report says. Protections for workers must increase, as should more reliable enforcement of existing labor laws. United States anti-discrimination laws are not sufficient to protect workers, according to the report.
"Federal enforcement of existing law is weak, so Maine must step up to protect workers’ rights and guarantee fairness in the workplace," it says.
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