Central Minnesota is a manufacturing stronghold, with several global manufacturing firms operating there.
The region is especially well known for its expertise in food processing, printing, furniture manufacturing, appliances, machinery and heavy equipment manufacturing.
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9/9/2020 9:00:00 AM
Luke Greiner
Workers of different races work in very different industries, leading to different employment outcomes. Using the Longitudinal Employer-Household Dynamics (LEHD) Quarterly Workforce Indicators dataset, the types of industries workers are employed in can be disaggregated by race and ethnicity. Where workers are employed – and even more so the jobs they do in those industries – helps explain wage differences among workers of different races. Each color in the interactive chart below represents a different industry, and the size represents the share of employment of that race who work in the industry.
The first light blue section of the top bar for "White Alone" represents that 17.2% of white workers in Central Minnesota are employed in the Health Care and Social Assistance industry, where the average wage for all workers is $46,524. Another example: the dark gray section of the bar for "Hispanic or Latino" represents 27.8% of Hispanic or Latino workers who are employed in Manufacturing, which has an annual average wage of $57,528.
The chart also shows that about 50% of Black or African American workers and 40% of Asian workers in Central Minnesota are employed in either Health Care and Social Assistance or Manufacturing; while over one-quarter of American Indian workers are employed in Public Administration, and another 19% work in Accommodation & Food Services.
These differences have serious wage implications because the types of occupations that people hold vary greatly by industry. If you bear with me for an even deeper dive, the occupations workers hold within the same industry can be dramatically different. For instance, Asians who are employed in the Health Care and Social Assistance industry earned an average wage of $70,236 compared to White workers who earned an average annual wage of $46,788. The reason for the wage difference is likely from a significant share of Asians working in higher paying occupations – such as Doctors or Surgeons – within that industry, or a smaller share working in lower paying entry-level or lower skilled occupations – such as Home Health Aides or Housekeeping Cleaners. Understanding the difference in both industries and occupations is key to understanding why wages vary by race and ethnicity.
Contact Luke Greiner at 320-308-5378.
