Citigroup says it will raise pay for women and minorities to close a gap with men and whites. The move demonstrates how a tight labor market, falling taxes, and and the Trump economic boom are benefiting a wide range of Americans.
The move to narrow the pay gap is the first of its kind by a big U.S. bank. Despite the attention the issue received during the Obama administration, no such move ever materialized during the previous administraiton.
The bank said it was also studying pay in the U.K. and Germany.
Advocates of Trump’s economic nationalism have long maintained that their agenda would benefit Americans of all races, ethnic backgrounds, and help women. Critics have charged that phrases such as “America first” promise an economy that would exclusively benefit older, white Americans.
So score this one for the economic nationalists.
Citigroup said it will increase the pay of women and minorities in order to close gaps. Its analysis of total compensation of its employees in the U.S., U.K., and Germany found that on average women earned 99 percent of men’s pay and minorities earned 99 percent of non-minorities’ pay.
It’s likely that as the economic expansion continues and labor market conditions improve even further, many companies will find themselves doing more for employees in an effort to attract and retain talent. Narrowing pay gaps with raises is a particularly attractive way to retain employees, as it not only generates goodwill in the workforce but with the broader public as well.