Closing the Gap

Diversity is a priority for the Richmond Fed and the Federal Reserve System. In many ways, the disparities we see at the management level have their roots very early, in the opportunities available to people even as young children. College enrollment and completion rates vary widely by socioeconomic status, in part because children from higher-status families have more opportunities to gain the skills they need to succeed in college. A four-year college isn’t the right fit for every student, and a number of well-paying jobs don’t require a four-year degree. Part of preparation at the K-12 level should be informing students about those opportunities and about how they can train for them, for example, at community colleges or via apprenticeship programs. If we want to increase the diversity of our corner offices and boardrooms — and build a pipeline of diverse candidates for these offices — we need to address the disparities that exist well before the job interview. This is also one of our best opportunities to ensure our economy’s continued growth.