Understanding the Racial Wealth Gap and Its Causes

Racial Wealth Gap

Wealth disparity among racial and ethnic groups.

Wealth Inequality

Disproportionate wealth accumulation by top households.

Median Household Wealth

Middle value of wealth across households by race.

Slavery

Historical system contributing to racial wealth disparities.

Segregation

Separation of races impacting economic opportunities.

Redlining

Discriminatory practice denying loans based on race.

GI Bill

Post-WWII program aiding white veterans' wealth accumulation.

Color-Blind Policies

Policies ignoring racial disparities in wealth.

FHA

Federal Housing Administration, established 1934, supports housing.

New Deal

1930s programs aimed at economic recovery.

Emergency Medical Bills

Unexpected healthcare costs impacting financial stability.

Two-Parent Household

Family structure associated with higher wealth accumulation.

Single Parent Households

Households with one parent, often face higher poverty.

College Attendance

Higher education linked to increased wealth potential.

White Privilege

Societal advantages benefiting white individuals economically.

Poverty Rates

Percentage of population living below the poverty line.

Social Mobility

Ability to move between social classes.

Survey of Consumer Finances

Data source for household wealth statistics.

Public Policy Decisions

Government actions influencing economic disparities.

Wealth Accumulation

Process of building financial assets over time.

Racial Disparities

Inequities in wealth and opportunities among races.

Emergency Expenses

Unforeseen costs affecting financial stability.

Desegregation

Ending the separation of racial groups in schools.

Income Inequality

Disparity in earnings among different income groups.

Earnings Gap

Difference in annual earnings among demographic groups.

Child Poverty Rate

Percentage of children living below the poverty line.

Median Income

Middle income value separating higher and lower earners.

Racial Earnings Inequality

Income disparity based on race and ethnicity.

Labor Market Discrimination

Unfair treatment in hiring based on race.

Implicit Bias

Unconscious judgments affecting decision-making.

Categorical Exclusion

Job applicants denied opportunities due to race.

Shifting Standards

Different evaluation criteria for applicants of different races.

Deindustrialization

Transition from manufacturing to service-based economy.

Unionized Jobs

Employment positions protected by labor unions.

Wage Gap

Difference in earnings between men and women.

Asian Median Earnings

Highest median weekly earnings among racial groups.

Latinx Women's Earnings

Median weekly earnings of $702 in 2020.

Native American Earnings

Only 19% earn more than $1,200 weekly.

Black Women's Earnings

Only 62 cents for each dollar of white men's.

White Women's Earnings

69 cents for each dollar of white men's.

Income Stagnation

Lack of income growth for lowest earners.

Income Disparities

Differences in income across various demographics.

Sociological Explanations

Theoretical frameworks analyzing social factors in inequality.

Human Capital

Education and skills affecting income potential.

Unionization Rate 1954

35% of workforce was unionized in 1954.

Unionization Rate 1980

Unionization dropped to 20% by early 1980s.

Unionization Rate 2008

Only 8% of workforce unionized by 2008.

Racial Wealth Gap

Disparity in wealth among racial groups.

Racially Restrictive Covenants

Contracts preventing property sale to non-whites.

Federal Housing Administration (FHA)

Established in 1934 to support construction industry.

Wealth Gap Factors

Five factors explaining wealth gap disparities.

Homeownership Impact

Years of homeownership accounts for 27% wealth gap.

Household Income Impact

Household income contributes 20% to wealth gap.

Unemployment Impact

Years of unemployment accounts for 9% wealth gap.

Education Impact

College education contributes 5% to wealth gap.

Inheritance Impact

Inheritances account for 5% of wealth gap.

Homeownership Disparity 2011

73% of whites owned homes; 45% of Blacks.

College Graduation Disparity 2011

34% of whites graduated; 20% Blacks, 13% Latinos.

Education Policy Solutions

Invest in equitable preschool and K-12 education.

Labor Market Policy Solutions

Create federal job programs and support unions.

Homeownership Policy Solutions

Enforce housing anti-discrimination laws strictly.

Fannie Mae and Freddie Mac

Organizations that modify loans for struggling homeowners.

Federal Aid for Poor

Increase support for working poor families.

Early Childhood Programs

Expand intervention programs for low-income families.

Nutrition and Health Services

Improve health services for poor families.

Teenage Pregnancy Reduction

Strengthen efforts to reduce teenage pregnancies.

Racial Discrimination Enforcement

Enhance legal enforcement against hiring discrimination.

Residential Segregation Reduction

Efforts to decrease residential segregation.