Explaining racial disparities in access to employment benefits

Abstract

This research examines disparities in access to pension and health insurance plans between white, blacks, Latino and Asian workers in the American labour force. Using data from the 2006 March Supplement of the Current Population Survey, the analysis reveals that Latino workers are the most disadvantaged and white workers are the most advantaged. The entire gap in likelihood of receiving benefits between whites and Asians, and a substantial portion of the gap between whites and blacks, can be accounted for by socio-demographic and employment-related variables, but only a small portion of the gap between whites and Latinos can be attributed to such variables. The findings suggest that reliance on earnings for estimation of inequality underestimates the economic gap between racial groups. Explanations for disparities in access to employment benefits are offered and the relevance of the findings to other societies is discussed.