At MLT, we exist to advance racial equity and close racial wealth gaps.
We do this via programs that primarily benefit individuals who lack access to career accelerating resources, including Black, Latine, and Native American individuals and by working with major employers to improve Diversity, Equity, and Inclusion.
The racial wealth gap in America is wider today than it was in the 1960s when it was still legal to discriminate.
Today, the median Black family in America has just 16% as much wealth as the median White family. Latine households don’t fare much better, with median wealth at only 22% compared to White households; Native American households fall in between the two. If we continue on our current trajectory, the gap is projected to continue to rise.
Closing the racial wealth gap requires addressing its primary drivers, which are not generally well understood. Recent research by the Federal Reserve Bank of Boston shows that 75% of the gap is caused by differences in lifetime earnings and benefits. Contrary to popular belief, intergenerational transfers (inheritances and gifts) account for only ~15% of wealth gaps.
MLT addresses four critical pillars that have the potential to significantly close persistent racial wealth gaps within one generation:
60% of Black and Latine four-year college graduates start their careers unemployed or underemployed. Further, the average Black or Latine college graduate has lower net worth than the average White individual with no college education. Our solution is proven to close the racial starting salary gap, ensuring that educational attainment results in better economic conditions.Economic Mobility for Students
Employers directly control the two largest contributors to racial wealth gaps: pay and benefits. Over 95% of employees of color have faced racism in the workplace. Given that around two-thirds of Americans work for medium and large employers (a trend that has been increasing for the past several decades), we can meaningfully increase racial economic equity by improving employer practices. MLT provides employers with a comprehensive roadmap, benchmarks, and support for effectively and systematically increasing equity that is shown to increase progress.Equitable Employer Practices
During their prime earning years in their 40’s and 50’s, the median White four-year college graduate earns nearly $100K per year, compared with just $65K for the average Black worker with the same education. Looking at the overall leadership pipeline, Black, Latine, and Native American individuals hold less than 3% of senior executive roles at major companies, despite representing over 30% of college graduates. Helping more Black, Latine, and Native American professionals succeed throughout their careers is critical for both closing wealth gaps for those individuals and creating more diverse leaders who will help to advance more equitable employer practices. Maximizing Career Trajectories
Far too few Black, Latine, and Native American individuals are participating in high-growth businesses. Black and Latine individuals own 8% of small businesses, but less than 2% of medium and large businesses. MLT is working to ensure that Black, Latine, and Native American individuals are able to participate in the wealth-generating opportunities associated with entrepreneurship and the influence that comes with starting companies and generating personal wealth (e.g., the opportunity to fully control company policies, practices, and investments to steer them in a more equitable direction). Entrepreneurs and High Growth Businesses