The Racial Wealth Gap

The racial wealth gap: How African-Americans have been shortchanged out of the materials to build wealth, Janelle Jones, Economic Policy Institute, February 13, 2017, available here

Failures in the provision of these building blocks to the African-American population have led to an enormous racial wealth gap. The racial wealth gap is much larger than the wage or income gap by race. Average wealth for white families is seven times higher than average wealth for black families. Worse still, median white wealth (wealth for the family in the exact middle of the overall distribution—wealthier than half of all families and less-wealthy than half) is twelve times higher than median black wealth. More than one in four black households have zero or negative net worth, compared to less than one in ten white families without wealth, which explains the large differences in the racial wealth gap at the mean and median.  These raw differences persist, and are growing, even after taking age, household structure, education level, income, or occupation into account.

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