Asset Inequality by Race

Rationale

Due to a variety of factors, including starting out with differential wealth endowments and facing outright discrimination, racial minorities accumulate-on average-much less than white families. For example, on the basis of data from the Federal Reserve, the National Council of La Raza reports that, in 1998, the median net worth of Hispanic households was $9,200, that of African American households was $15,000, and that of white households was $95,610. The measure used in the Report Card indicates how equally assets are distributed between white and non-white households.

About Measure

Mean net worth of white-headed households divided by the mean net worth of non-white-headed households (expressed in 1996 dollars).

Source

Calculations by Robert and Jon Haveman based on U.S. Department of Commerce, Bureau of the Census. Survey of income program population [Electronic data tape]. (1995 and 1996).Washington, D.C.: Author.