­­Diversity and the wage gap

—Cindy I-Fen Cheng

While much has been written about the lack of diversity in Silicon Valley’s tech industries, recent findings by the American Institute for Economic Research sheds light on what may be a more alarming concern: wage disparities based on race and gender.

As data released by Google, Apple, Microsoft, Facebook and Twitter has shown, the tech industry is dominated by men. Racially, whites made up the largest percentage of tech workers while Latinos, Blacks, mixed-race and groups listed as “other,” the smallest. Unsurprising to those who are familiar with the layout of Silicon Valley, Asian Americans were not only well represented in these companies; they also comprised the largest percentage of tech workers at Yahoo and LinkedIn.

This impressive showing of Asian Americans in tech positions may explain why findings on wage disparities are so appalling. As the tech industry is inching towards “diversity,” isn’t “equality” within the work force the anticipated result?

The wage gap suggests that the answer is “no.” According to the findings of the AIER, Asian Americans made $8,146 less than whites in 2012, $3,656 less than Blacks, and $6,907 less than employees listed as “other.” With this wage gap, “diversity” is reduced to being merely a symbolic measure of equality.

Notably, the Asian American wage gap raises other concerns. With the strong presence of Asians in the tech industry, does this suggest that companies are choosing to hire foreign workers, also known as H-1B workers, over citizens and permanent residents? More importantly, does the wage gap suggest that the hiring of H-1B workers are driving down American wages, given the longstanding practice of hiring foreign workers as “cheap” labor over filling a skills gap in the work force?

Thus far, the debate over H-1B workers has focused on a narrow set of questions that seek to determine whether H-1B workers and more broadly, immigrants, are good or bad for our country. Missing from this debate are questions over what corporations and the federal government are doing to ensure equal pay for equal work. Instead of asking whether or not foreign workers are driving down wages, we should also consider how the belief that it is ok to discriminate against H1-B workers and pay them less is working to sustain wage disparities.

If we want to see equality in work place, we need to recommit ourselves to the struggle against discrimination and engage in open and frank discussions about the effects of racism, sexism, and xenophobia. Only then will we see a fair distribution of people from various backgrounds and genders in the work force, and wage parity for all workers.

Cindy I-Fen Cheng is Associate Professor of History and Asian American Studies at the University of Wisconsin-Madison. She is the author of Citizens of Asian America: Democracy and Race during the Cold War (now available in paperback from NYU Press).