Indicator: Income Gains with Racial Equity in the Workforce

Racial pay gaps mean workers of color on the Central Coast earn nearly $30,000 less per year on average than they would with equitable pay. In 2021, people of color earned far less than white workers with comparable education and experience. Closing those gaps would lift incomes dramatically, from $35,000 to $54,000 in San Luis Obispo County, from $33,000 to $68,000 in Santa Barbara County, and from $35,000 to $66,000 in Ventura County.

Latinx workers would see the largest gains. In Santa Barbara and Ventura counties, the average incomes for Latinx workers would more than double under equitable pay, rising by $37,000 and $34,000 respectively. Black workers would gain $26,000 in San Luis Obispo County, $20,000 in Santa Barbara County, and $18,000 in Ventura County.

These gaps reflect occupational segregation, discrimination in hiring and promotion, and unequal access to higher-wage industries. Closing these gaps means enforcing labor protections, dismantling barriers to high-wage industries, and creating education pathways that actually lead to well-paying jobs. The region’s economy loses when it underpays a third of its workforce.

Insights & Analyses: San Luis Obispo County
  • In San Luis Obispo County, income gains for people of color with racial equity in the workforce would be about $19,200 on average, with the highest gains for Black workers, who would earn over $26,000 more on average.
  • This is followed by the Latinx workforce, which would earn almost $20,000 more on average with racial equity. 
Insights & Analyses: Santa Barbara County
  • In Santa Barbara County, income gains with racial equity in the workforce would be $34,500 for people of color on average.
  • Latinx workers would see the highest income gains, earning an estimated $37,000 more. This would more than double Latinx workers’ average earnings.
  • Black workers in Santa Barbara County would earn $20,000 more on average with racial equity
Insights & Analyses: Ventura County
  • In Ventura County, income gains with racial equity in the workforce would be $30,800 for people of color on average, with the highest gains for Latinx workers, who would more than double their average earnings ($34,000 more on average).
  • This is followed by the Black population, which would earn $18,000 more on average with racial equity.

The Central Coast Regional Equity Initiative

The Central Coast Regional Equity Initiative is a collaboration between:

USC Equity Research Institute (ERI)
The Fund for Santa Barbara
The UCSB Blum Center on Poverty, Inequality, and Democracy