Latinas in Silicon Valley have the largest pay gap of any large metropolitan area in California.
Latinas had a median annual per capita income of $34,400 in 2022, compared to white males who made a median income of $102,000, according to a recent report by Hispanas Organized for Political Equality (HOPE). For every dollar a white male earned in San Jose, Sunnyvale and Santa Clara — defined as part of the Silicon Valley metropolitan area — a Latina earned 33 cents. In San Diego, Latinas earned 47 cents to every dollar a white male earned, making nearly $30,300 compared to $63,500 for a white male. In Riverside, Latinas earned 52 cents to every dollar a white person earned, or $25,300 compared to $48,600 respectively.
“In Silicon Valley, (income inequality) is very acute. With the prevailing industries of tech, it exacerbates the wealth gap,” Gabby Chavez-Lopez, executive director of Latina Coalition of Silicon Valley, told San José Spotlight.
Several factors are detailed in the report that contribute to the wage gap. Most Latinas throughout California tend to be concentrated in care industries and other occupations that pay less. They are also younger than the average worker and have attained less education, making it harder to reach a senior position. Nationwide, only 30% of Latinas are in management positions compared to 48% of white women.
Discrimination also plays a factor in the wage gap. On average, women are paid less than men in the same occupation, and the pay gap is the greatest for women of color. In California, a woman earns 81 cents to every dollar a man makes, according to the state’s Civil Rights Department.
Two female employees at Apple sued the company in June for allegedly paying them less than their male counterparts for doing similar work. One of the plaintiffs said she saw a W-2 left by a male colleague in the office printer — he was getting paid nearly $10,000 more.
“Discrimination is a big reason why the wage gap exists. Since women entered the workforce, their labor has been undervalued and that has shown through the data,” Chavez-Lopez said. “The most disparate gender wage gap is Hispanic women, and they are also the fastest growing workforce.”
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In an annual survey conducted by the Hispanic Foundation of Silicon Valley, 45% of Latino survey respondents said they felt their race impacted their ability to obtain a job in Santa Clara County.
The local wage gap equates to Latinas losing about $46,000 every year . Over the course of a 40-year period, that scales up to $1.8 million.
“The silver lining in all of this is there has been a surge of entrepreneurship of women and women of color because they need to find opportunities for themselves,” Chavez-Lopez told San José Spotlight. “They are writing their own rules, building their own companies … so women can exist here in Silicon Valley. If we don’t, we will cease to exist.”
The number of Latina-owned businesses in California grew 26% from 2018 to 2021, according to the HOPE report. Overall, Hispanic-owned businesses accounted for 11% of businesses in the state.
To address the disparities in income, Chavez-Lopez said boards of organizations and upper management need to be diversified so leadership reflects the workforce. Her coalition is focused on getting more Latinas in positions of influence. Chavez-Lopez said organizations in both the private and public sector should do audits of the wages to get a clear picture of what employees are getting paid. From there, changes need to made to address the inequities.
After learning about the significant wage gaps that exist for Latina workers, San Jose Councilmember Peter Ortiz said he would pursue a request to audit city payrolls. He wants the audit to have an emphasis on looking at the pay for women and people of color within middle and senior management.
“We’re hoping it will create a ripple effect,” Ortiz told San José Spotlight. “If we’re calling on Apple and Google (to change), we got to make sure we are doing it ourselves.”
Contact Joyce Chu at joyce@sanjosespotlight.com or @joyce_speaks on X, formerly known as Twitter.
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