Closing the Opportunity Gap: Building Equity in Oklahoma

7/30/2019 Closing the Opportunity Gap: Building Equity in Oklahoma

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Closing the Opportunity Gap:

Building Equity in OklahomaKate Richey, Oklahoma Policy [email protected] | 918 794 3944

www.okpolicy.org


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Oklahoma Policy Institute is a nonprot,nonpartisan think tank that provides data-

driven information, analysis, and ideas on statepolicy issues


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Building Economic SecurityOver a Lifetime


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Overview

Measuring race and wealth What is the wealth gap? Historical roots of the gap

I. Key Concepts

1. Foundational Assets2. Generative Assets3. Regenerative Assets

II. Measuring the Racial Wealth Gap in Oklahoma

III. Closing the Gap


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Measuring

Race

& Wealth

Racial categories are not xedor essentialdemographic markers Race is constructed by social, cultural, & political forces There is no direct causal relationship between race and wealth


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What is Wealth?Wealth is distinct from income

This changes our conception of poverty Income poverty vs. asset poverty

Wealth is measured in terms of assetsTangible nancial assets (i.e. savings account, property) Intangible assets (i.e. education, health)


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What is the Wealth Gap?

Assets - Liabilities = Net Worth

White households possess 18xmore wealth than Hispanic

households and 20x more wealththan African American households


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Asset povertyin Oklahoma

The asset poverty rate forhouseholds of color in Oklahoma is

nearly double the rate for Whitehouseholds


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Historical Roots of the Gap

Homestead Act (1862)Large scale redistribution ofland from autonomous tribes

and people of color, to whitefarmers and settlers


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Osage Reign of Terror (1920s)Mineral holdings were

violently stripped fromOsage members



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Historical Roots ofthe Gap

Tulsa Race Riot (1921) In a single day, hundreds ofhomes, banks, and businessesin North Tulsa were destroyed


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Mortgage interest deduction

G.I. Bill


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Grandparents A

House on 20 acres

Your parents: Paid foryour college & law

school

You earn signicantincome & build assets

Grandparents B

$35,000

Your parents: Paid thedownpayment on your

house

You rent the house formonthly income

Intergenerational Wealth Transfers


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II. Measuring the Racial Wealth Gap

1 Foundational Assets (health, education, transportation)Prerequisites to employment that generates income

2 Generative Assets (employment, income)The cash ow that enables nancial security and asset-building

3 Regenerative Assets (savings, homeownership)Assets that generate wealth without labor


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1. Foundational Assets: Health

Health is your most fundamental asset Poor health lowers quality of life, inhibits employment, and

drains income

Measuring the health gap Childhood health Smoking & obesity Chronic disease Access to & quality of Care


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Childhood Health


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Smoking


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Obesity


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Chronic Disease African-American residents are more likely than White and

Hispanic residents to develop cancer and die from thedisease

African-American residents have the highest mortality ratefor heart diseaseand are more than twice as likely to diefrom diabetesas White residents

Native Americans (15.1%) and African-Americans (14.7%)have the highest prevalence ofdiabetes


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Access to &

Quality of Care

Hispanic adults have the highest rate of uninsurance Treatment disparities also contribute to the health gap Even insured adults face barriers, i.e. underinsurance, low

incomes, lack of transportation, time offwork, availability of PCP


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11.4% 15.1%17.0%

42.8%

32.3%34.0%

35.1%

28.1%

31.8%

34.0% 32.3%

19.4%16.4%

11.9% 11.4%7.0%8.0%

5.0% 4.2% 2.7%

Grad/professionaldegree

Bachelor's degree

Some college orAssoc. degree

High school/GED

No high schooldiploma

White AfricanAmerican

NativeAmerican

Hispanic

Educational Attainment, 25 yrs. and older, Oklahoma 2008-2010

Source: U.S. Census Bureau, American Community Survey 2008-2010


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Education Enrollment in higher

education reects the statesdemographics, with theexception of Hispanicstudents

However, there are stillsignicant gaps ingraduation rates from 4-yr

colleges and universities


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Transportation

Households in communitiesof color are nearly 4x as likely

as households inpredominately white

communities to report havingno access to a vehicle

15.7%

4.0%

Communities of color

(40% white)

Predominately white

communities

(>75% white)


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2. Generative Assets

Generating sufficient cash ow is a prerequsite to asset-building Measuring the generative assests gap

Employment Income


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Employment

Native American and African American workers areunemployed at nearly twice the rate of White workers


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Income

Predominately whitecommunities earn nearly twice as

much income per capita ascommunities of color


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Income

Families of color earnbetween $11k and $19k

less than the statesmedian family income


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Women | Men


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3. Regenerative Assets

These assets yield income not earned directly through labor Measuring the regenerative assets gap

Savings & Investment Homeownership


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Banking

Just under halfof Hispanichouseholds are unbanked

Just under a quarter ofAfrican-American households

are unbanked

6.0%

23.4%

42.2%

Percent of Households that are

Unbanked in Oklahoma, 2009

White AfricanAmerican

Hispanic


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Homeownership

Just under halfof Hispanic and African American householdsown homes

Between 1970 and 2004, the gap in homeownership ratesbetween White and African American residents of OklahomaCity more than doubled

African American

Hispanic

Native American

White 72.2%

63.6%

49.3%

42.7%

Homeownership Rates by Race/Ethnicity, Oklahoma 2010


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III. Closing the Gap1. Foundational Assetsp Invest in early childhood healthp Expand health coverage and improving

access

p College completion initiatives targetingstudents of color and colleges/universities

p Broaden public transportationinfrastructure

p Control the cost of borrowing to boostvehicle ownership

2. Generative Assetsp Invest in Workforce Oklahomap Reform discriminatory policing tactics and

sentencing policies & reduce

overincarceration

p Reduce hiring discrimination in the privatesector


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III. Closing the Gap3. Regenerative Assetsp Encourage use of traditionalnancial sector and

encourage traditional banks to expand intounderserved communities

p Homeowner education, foreclosure prevention,and homebuyer assistance

Closing the Opportunity Gap: Building Equity in Oklahoma

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