Labor Market Policies for Racial Equity

This report presents policy considerations and offers a framework for addressing racial disparities in the labor market. Disparities between Black and white workers are evident across a wide range of labor market outcomes: Black workers face higher rates of unemployment and underemployment, lower wages and earnings, lower rates of access to programs designed to support workers (e.g., unemployment insurance, paid leave), and lower rates of earnings growth. We review how historical and contemporary policy choices in the US have contributed to these racial disparities. We also identify a corresponding set of policy changes, suggested and supported by evidence on how these changes are key building blocks toward an economy in which Black workers can attain better labor market outcomes. By prioritizing fairness in policy design and implementation, policymakers can tackle systemic barriers Black workers face and pursue structural reforms and targeted interventions to foster shared prosperity for all.