progress and continuing disparities race and ethnicity population trends and policies

Progress and Progress and Continuing DisparitiesContinuing Disparities

Race and EthnicityRace and Ethnicity

Population Trends and Policies


Measuring RaceMeasuring Race


UnemploymentUnemployment

• In 2000 the African American unemployment rate In 2000 the African American unemployment rate reached a historic low of 7.1%. It has been 9.9% or reached a historic low of 7.1%. It has been 9.9% or higher since January 2002.higher since January 2002.

• Latino / Hispanic unemployment rates also dropped Latino / Hispanic unemployment rates also dropped from 8.0% in 1988 to 5.7% in 2000, but rose again.from 8.0% in 1988 to 5.7% in 2000, but rose again.

UnemploymentUnemploymentPopulation Trends and Policies

Source: Betsy Leondar-Wright, Meizhu Lui, Gloribell Mota, Dedrick Muhammad, and Mara Voukydis (2005). State of the Dream 2005: Disowned in the Ownership Society. Boston: United for a Fair Economy.


IncomeIncome


Median Family Income by RaceMedian Family Income by Race1980-20001980-2000

Black-white Difference

Black

White


Black-White Difference in MFI Black-White Difference in MFI by Family Typeby Family Type

1980-20001980-2000

Married

Female-headed

• About half of the progress in the median income of About half of the progress in the median income of people of color from 1996 to 2000 was wiped out in people of color from 1996 to 2000 was wiped out in the following three years.the following three years.

• After slowly increasing from 55% of white income in After slowly increasing from 55% of white income in 1988 to 65% in 2000, Black median income fell again 1988 to 65% in 2000, Black median income fell again to 62% in 2003. to 62% in 2003.

• In 2004 for the first time in 15 years, the average In 2004 for the first time in 15 years, the average Latino household had an income that is less than two-Latino household had an income that is less than two-thirds that of the average white household.thirds that of the average white household.

IncomeIncomePopulation Trends and Policies


• The median income of black families as a percentage of non-The median income of black families as a percentage of non-Hispanic white median family income was about the same in Hispanic white median family income was about the same in 1997 as in 1967, at less than 60 percent.1997 as in 1967, at less than 60 percent.

• Hispanic median family income has fallen in absolute terms Hispanic median family income has fallen in absolute terms (and relative to that of non-Hispanic whites) since 1972, in (and relative to that of non-Hispanic whites) since 1972, in part due to the increasing representation of immigrants in the part due to the increasing representation of immigrants in the Hispanic population. Hispanic population.

• The median family income of Japanese Americans The median family income of Japanese Americans exceedsthat of non-Hispanic white familiesexceedsthat of non-Hispanic white families

• The income of Cambodian American families is lower than The income of Cambodian American families is lower than that of black families.that of black families.

• The median family income of American Indians was lower The median family income of American Indians was lower than that of blacks.than that of blacks.

IncomeIncomePopulation Trends and Policies


PovertyPoverty

• Throughout the 1990s, poverty rates fell across the Throughout the 1990s, poverty rates fell across the board, declining fastest for African Americans and board, declining fastest for African Americans and Latinos. Latinos.

• But since 2000, more than one third of that progress But since 2000, more than one third of that progress in reducing poverty among African-American in reducing poverty among African-American families has been erased, as 300,000 African-families has been erased, as 300,000 African-American families fell below the poverty line from American families fell below the poverty line from 2000 to 2003. 2000 to 2003.

PovertyPovertyPopulation Trends and Policies



EducationEducation


WealthWealth

• Although progress has been made in other areas like Although progress has been made in other areas like education, home ownership, and income, the black/white education, home ownership, and income, the black/white difference in wealth has changed very little since the 1960s.difference in wealth has changed very little since the 1960s.

• Comparing families with the same income levels, the net Comparing families with the same income levels, the net worth of white families on average is two times larger than worth of white families on average is two times larger than that of black families. that of black families.

• The black/white difference in net worth cannot be explained The black/white difference in net worth cannot be explained by other factors, like education, earnings rates, savings rates.by other factors, like education, earnings rates, savings rates.

• The black/white difference in net worth is almost completely a The black/white difference in net worth is almost completely a function of differences in home equity.function of differences in home equity.

• However, or black households’ nearly half of their net worth However, or black households’ nearly half of their net worth was comprised of home equity, while the comparable figure was comprised of home equity, while the comparable figure for whites was just one quarter.for whites was just one quarter.

WealthWealthPopulation Trends and Policies


HomeownershipHomeownership

• The total loss of wealth for people of color is The total loss of wealth for people of color is estimated to be between $164 billion and $213 billion estimated to be between $164 billion and $213 billion for subprime loans taken during the past eight years. for subprime loans taken during the past eight years.

• This probably represents the greatest loss of wealth This probably represents the greatest loss of wealth for people of color in US history.for people of color in US history.

• Spillover effect of the subprime crisis affects whole Spillover effect of the subprime crisis affects whole communities negatively, in terms of abandoned communities negatively, in terms of abandoned houses, increased crime, devaluation of neighboring houses, increased crime, devaluation of neighboring houses, and erosion of the tax base, causing revenue houses, and erosion of the tax base, causing revenue shortfalls that mandate service cuts. shortfalls that mandate service cuts.

Subprime LoansSubprime LoansPopulation Trends and Policies

Source: Amaad Rivera, Brenda Cotto-Escalera, Anisha Desai, Jeannette Huezo, Dedrick Muhammad (2008). Foreclosed: State of the Dream 2008. Boston: United for a Fair Economy.


InheritanceInheritance

• Whites are more likely than people of color to have parents Whites are more likely than people of color to have parents who give them assets.who give them assets.

• In interviewing Black and white families for his book,The In interviewing Black and white families for his book,The Hidden Costs of Being African American, Thomas Shapiro Hidden Costs of Being African American, Thomas Shapiro found that 28% of white families receive inheritances, while found that 28% of white families receive inheritances, while only 7.7% of Black families do. The sizes of the inheritancesonly 7.7% of Black families do. The sizes of the inheritances

• are also widely divergent: in Shapiro’s survey, the parental are also widely divergent: in Shapiro’s survey, the parental median net worth for black families was $47,000, compared to median net worth for black families was $47,000, compared to $198,700 for white families.$198,700 for white families.

• About one-third of baby boomer whites in 1989 were due to About one-third of baby boomer whites in 1989 were due to receive future inheritances worth more than $34,000, while receive future inheritances worth more than $34,000, while fewer than one in twenty Blacks would receive a similar fewer than one in twenty Blacks would receive a similar endowment.endowment.

InheritanceInheritancePopulation Trends and Policies

• Half of white families, but only one fifth of Black Half of white families, but only one fifth of Black families, have parents who can help them buy a families, have parents who can help them buy a home. home.

• According to the Federal Reserve, the average According to the Federal Reserve, the average inheritance plus financial gifts given to a white inheritance plus financial gifts given to a white family in 2001 was $20,685, which is enough for a family in 2001 was $20,685, which is enough for a down payment. down payment.

• That’s ten times more than the mean African That’s ten times more than the mean African American legacy of about $2,000. Latinos passed on American legacy of about $2,000. Latinos passed on only $385 to their children.only $385 to their children.

Down Payment AssistanceDown Payment AssistancePopulation Trends and Policies


RetirementRetirement

progress and continuing disparities race and ethnicity population trends and policies

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white income

black median income

hispanic median family

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median income of people

incomemedian family

net worth of white families

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