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Wage Inequality · Information Visualization

Analyzing Payroll Disparities in New York State among the ethnic minorities

Five Tableau visualizations exposing how ethnicity shapes earnings across NY industries — with Non-Hispanic workers consistently out-earning Hispanic counterparts, most sharply in finance and professional services.


NAICS sectors Occupational segregation American Business Survey Annual pay analysis


New York City's restaurant industry has long relied on immigrant labor, with over 60% of its workforce comprising foreign-born workers as of 2018. These workers are disproportionately concentrated in low-wage roles such as cooks, dishwashers, and food prep staff, with Hispanic and Asian communities representing the majority (44% and 20%, respectively). Minority-owned establishments, particularly in neighborhoods like Jackson Heights and Elmhurst/South Corona, form the backbone of the city's culinary diversity, offering cuisines from over 150 countries. Historically, this sector has shown growth: minority-owned employer firms nationwide saw payrolls rise by 7% and employment by 6.2% between 2014–2015.  

However, the administration's renewed emphasis on immigration enforcement including workplace raids and deportations has introduced unprecedented risks. Concurrently, systemic inequities persist: a 2024 NYC Council report revealed that workers of color earn $0.84 for every $1 paid to white employees, a gap exacerbated by occupational segregation. This project seeks to visualize how these intersecting forces, demographic trends, wage disparities, and policy shifts are reshaping the city's food sector, with implications for minority entrepreneurs, workers, and culinary diversity.



Research Question

Based on the project analysis, here are the key research questions addressed:
How do payroll disparities vary across ethnic groups within different NAICS industry sectors in New York State in 2022?

Supporting Research Questions

  1. What is the distribution of annual payroll across NAICS sectors in New York State in 2022?
  2. How does median income vary by ethnicity in relation to employment size in New York State in 2022?
  3. What disparities exist between labor-intensive and skilled-work sectors across ethnic groups in New York State in 2022?
  4. How are total payrolls distributed across NAICS sectors when disaggregated by ethnicity in 2022?
  5. How has employment size across NAICS sectors changed between 2019 and 2022?
  6. What are the implications of immigration enforcement policies on employment stability and payroll trends in immigrant-dependent sectors?



Materials/Datasets

I have collected my data from the U.S. Census Bureau's American Business Survey, specifically aggregated to New York State. The dataset includes business ownership information categorized by ethnic groups, with a focus on NAICS code classifications. Key variables in the dataset include payroll size and annual pay, allowing for an analysis of economic contributions and disparities among different immigrant and non-immigrant business owners.

The data was analyzed using Tableau for visualization, with Excel used for initial data cleaning and preprocessing. This process involved structuring the dataset, handling missing values, and ensuring consistency in NAICS classifications before importing it into Tableau for further exploration and analysis.



Methodology

This study employs a quantitative, descriptive analysis using secondary data to examine payroll disparities across ethnic groups within New York State's industry sectors. The research utilizes visual analytics to identify patterns in employment size, wage distribution, and ethnic representation across NAICS-classified industries for the year 2022, with comparative analysis to 2019 data.

Primary Dataset

  • Source: U.S. Census Bureau's American Business Survey (ABS)
  • Geographic Scope: New York State
  • Time Period: 2022 (primary analysis), with 2019 data for temporal comparison
  • Classification System: North American Industry Classification System (NAICS) codes

Key Variables

  • Ethnic Categories: Hispanic, Non-Hispanic, Equally Hispanic/Non-Hispanic, Classifiable, and Unclassifiable groups
  • Economic Indicators:
    • Annual payroll totals by industry
    • Median annual pay by ethnic group
    • Employment size (number of workers)
  • Industry Sectors: All NAICS sectors, with emphasis on accommodation and food services

Data Cleaning Process

  1. Excel Preprocessing:
    • Structured raw dataset from U.S. Census Bureau
    • Handled missing values and null entries
    • Ensured consistency in NAICS code classifications
    • Standardized ethnic category labels
    • Verified data integrity across variables
  2. Data Validation:
    • Cross-referenced NAICS codes for accuracy
    • Checked for outliers and anomalies in payroll and employment figures
    • Confirmed temporal consistency between 2019 and 2022 datasets



Analytical Approach and Strategy


The analysis utilized Tableau as the primary visualization platform to conduct a multi-dimensional examination of payroll disparities through six complementary visualization techniques: comparative bar charts for annual pay analysis across ethnic groups and industries, hierarchical treemaps to reveal total payroll distribution across NAICS sectors, dual-metric charts examining the relationship between median income and employment size by ethnicity, bubble charts mapping ethnic concentration across labor-intensive versus skilled-work sectors, heat maps displaying systematic payroll disparities across all sector-ethnicity combinations using color-intensity coding, and double distribution area histograms comparing employment size between 2019 and 2022 to identify temporal trends related to economic recovery and policy changes.

This strategy employed both cross-sectional analysis of 2022 data and longitudinal comparison with 2019 baseline data to identify structural inequalities, sectoral concentration patterns, and wage disparity ratios (such as the documented $0.84 per $1 earnings gap for workers of color), while contextualizing findings within the broader framework of immigration enforcement policies and their impacts on immigrant-dependent industries, particularly the accommodation and food services sector.



Visualization 1



  • Annual Pay Analysis: Non-Hispanic and Unclassifiable groups dominate in high-paying industries like finance, insurance, and professional/scientific services, earning significantly higher wages.


  • Employment Size: Hispanic and Equally Hispanic/non-Hispanic groups are more concentrated in industries like construction, health care, manufacturing, and retail trade, which have larger employment sizes but lower overall payroll, indicating lower wages in these industries.

There is an evident pay gap across industries, where Non-Hispanic and Unclassifiable groups earn disproportionately higher wages even in industries with diverse workforce representation.





Visualization 2



The treemap reveals significant disparities in annual payroll across NAICS sectors in New York for 2022. Finance and Insurance, Healthcare and Social Assistance, and Professional, Scientific, and Technical Services stand out as the highest-paying industries, indicated by their large size and darker color. These sectors dominate payroll distribution, suggesting higher wages and/or larger employment sizes compared to others.

Conversely, industries like Arts, Entertainment, and Recreation, Real Estate, and Other Services appear smaller and lighter in color, indicating lower total payrolls. This could be due to lower wages, smaller workforce sizes, or both. The Accommodation and Food Services sector, despite being a major employer, has a relatively smaller payroll, suggesting lower average wages within the industry.




Visualization 3



The Non-Hispanic and Classifiable categories show the highest median annual pay, while the Hispanic and Equally Hispanic/non-Hispanic groups have significantly lower incomes. Additionally, the employment size distribution suggests that the Non-Hispanic and Classifiable groups have the largest workforce representation, whereas the Equally Hispanic/non-Hispanic and Hispanic groups have smaller employment sizes. This suggests potential systemic wage inequalities and varying levels of workforce participation across ethnic groups, possibly pointing to structural barriers in employment opportunities and wage growth.




Visualization 4



               

The bubble chart shows that finance, insurance, and professional, scientific, and technical services are predominantly occupied by Non-Hispanic and Unclassifiable groups, suggesting these sectors require higher skill levels and have higher wage potential. Hispanic and Equally Hispanic/non-Hispanic groups are more concentrated in labor-intensive sectors such as construction, accommodation, food services, health care, and retail trade, which tend to have lower wages.

These results provide an overview of payroll disparities among various minority groups and act as ground work. For further analysis, I aim to expand this project by examining how the Accommodation and Food sector is affected by recent changes in immigration laws and ongoing deportations. This will help us understand how different administrations influence the economy and impact the livelihoods of individuals reliant on minimum wages.




Visualization 5



This heat map highlights payroll disparities across ethnic groups within different NAICS sectors in New York for 2022. The darker shades indicate higher payroll values, while lighter shades represent lower values. The data shows that non-Hispanic and classifiable groups have consistently higher payroll figures across nearly all sectors, while Hispanic and equally Hispanic/non-Hispanic groups tend to earn significantly less. The most prominent disparities appear in sectors like finance, information, and professional services, where non-Hispanic employees have a clear advantage. Meanwhile, industries such as agriculture, mining, and utilities show more equal distributions, though at lower overall payroll levels.

The heat map reinforces the structural inequalities within the labor market, indicating that ethnic classification significantly influences payroll distribution. The unclassifiable category, which shows variation across industries, suggests that a substantial portion of payroll data lacks clear ethnic identification, potentially affecting overall analysis. This visualization effectively conveys the uneven payroll distribution and can be used to further investigate policy implications or workforce diversity strategies.


Tableau




Conclusion

Building on this analysis, we now understand the potential implications of different administrations on employment trends. Given the recent increase in deportations and the administration's historically restrictive stance on immigration, we can anticipate a shift in workforce dynamics similar to what was observed in the pre-2020 period. Stricter enforcement of immigration laws, limitations on work visas, and reduced protections for undocumented workers are likely to create labor shortages in industries heavily reliant on immigrant labor, particularly in the accommodation and food services sector.

Historically, these policies have led to increased vacancies in low-wage, labor-intensive jobs, forcing businesses to either raise wages (leading to higher consumer costs) or reduce services due to labor shortages. The employment size comparison from 2019 to 2022 demonstrates how immigration policies directly influence workforce participation, and by extension, economic stability in key sectors. If similar restrictions are reintroduced, we may see a contraction in employment size in specific NAICS industries, reversing the post-2020 employment recovery. 

This research serves as the foundation for my final project, where I will focus on the accommodation and food services sector as a case study to assess the direct impact of immigration policies on labor availability and industry performance. By analyzing employment trends, business closures, and wage shifts within this sector, I aim to provide a data-driven evaluation of how immigration policy fluctuations shape economic outcomes.



References


  1. Office of the State Comptroller. The Restaurant Industry in New York City: Tracking the Recovery. September 3, 2020. Accessed March 29, 2025. https://www.osc.ny.gov/files/reports/osdc/pdf/nyc-restaurant-industry-final.pdf.
  2. Office of the State Comptroller. "DiNapoli: Restaurant Industry Critical to New York City's Economy." October 2020. Accessed March 29, 2025. https://www.osc.ny.gov/press/releases/2020/10/dinapoli-restaurant-industry-critical-new-york-citys-economy.
  3. HSBC Bank USA and Center for an Urban Future. Bolstering Immigrant and Minority-Owned Small Businesses in Elmhurst, Corona & Jackson Heights That Have Been Impacted by the COVID-19 Pandemic. August 11, 2020. Accessed March 29, 2025. https://www.about.us.hsbc.com/-/media/us/en/news-and-media/200812-hsbc-us-bolstering-immigrant-and-minority-owned-small-businesses.pdf.
  4. U.S. Census Bureau. "Number of Minority-Owned Employer Firms Increased in 2015." July 13, 2017. Accessed March 29, 2025. https://www.census.gov/newsroom/press-releases/2017/minority-owned-employer-firms.html.
  5. HostMe App Blog. "How Trump's Immigration Policies Are Impacting Restaurant Owners." January 28, 2025. Accessed March 29, 2025. https://www.hostmeapp.com/blog/how-trumps-immigration-policies-are-impacting-restaurant-owners.
  6. Yahoo News. "'The Teams Are Terrified:' How Restaurants Are Coping." March 23, 2025. Accessed March 29, 2025. https://www.yahoo.com/news/teams-terrified-restaurants-coping-trump-210000613.html.
  7. TODAY.com. "How Fears of ICE Raids Are Affecting Restaurant Workers." March 8, 2025. Accessed March 29, 2025. https://www.today.com/food/news/ice-raids-restaurant-workers-rcna194614.
  8. NYC Council Press Office. "NYC Council Releases 2024 Pay Disparity Report Showing Persistent Wage Gaps." April 23, 2024. Accessed March 29, 2025. https://council.nyc.gov/press/2024/04/23/2595/.