Racial and Ethnic Wealth Gaps in the U.S. Society for Financial Education and Professional...
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Racial and Ethnic Wealth Gaps in the U.S. Society for Financial Education and Professional Development October 26, 2015 Richard Fry Pew Research Center
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Transcript of Racial and Ethnic Wealth Gaps in the U.S. Society for Financial Education and Professional...
Racial and Ethnic Wealth Gaps in the U.S.Society for Financial Education andProfessional DevelopmentOctober 26, 2015
Richard Fry
Pew Research Center
Outline
• Introductory Material and Definitions• Trends in the Racial and Ethnic Wealth
Gaps• Ownership of Specific Assets• Demographic Correlates of Wealth
Building
Why Does Wealth Matter?
Protection against short-term economic shocks
Retirement income
Security and status for future generations
Access to superior health, education and other services
Housing component also provides shelter
Social and political influence
Trends in the Racial and Ethnic Wealth Gaps
Wealth Gaps Have Grown Since the Great Recession
Note: “Blacks” and “whites” include only non-Hispanics. Hispanics are of any race. Chart scale is logarithmic. The Great Recession began in December 2007 and ended in June 2009.Source: Pew Research Center tabulations of Survey of Consumer Finances public-use data
Median Net Worth in 2013 Dollars, from SCF
Wealth Gaps May Have Peaked
White-to-black White-to Hispanic
Note: “Blacks” and “whites” include HispanicsSource: U.S. Census Bureau, Survey of Income and Program Participation
1984 1988 1991 1993 1995 2005 2009 2010 2011
1210 10 10
7
10
1918
14
1984 1988 1991 1993 1995 2005 2009 2010 2011
8 8 810
7 7
15
12 12
Ratios of Median Wealth, 1984 to 2011 (from SIPP)
Shares of Households With Zero orNegative Net Worth, 2005 & 2010
Note: “Whites” and “blacks” refer to the non-Hispanic components of those populations.Source: Pew Research Center tabulations of Survey of Income and Program Participation data
Whites Hispanics Blacks
11%
23%
29%
14%
29%
34%
2005 2010
Ownership of Specific Assets
Source: Pew Research Center tabulations of Survey of Income and Program Participation data
Median Net Worth
Median Net worth Excluding
Home Equity
Share of Households
Owning Homes
Median Home Equity
Median Net Worth of
Homeowners
All $70,266 $17,296 65 $81,671 $166,520
White $112,808 $34,106 73 $86,776 $192,257
Black $6,446 $2,168 44 $51,045 $82,692
Hispanic $7,843 $4,094 47 $47,982 $74,589
Asian $91,205 $29,952 59 $122,507 $260,333
In 2012 Dollars
Home Equity, 2011
Note: Includes ownership of 401K, IRA, and KEOGH accounts, as well as direct ownership of stocks and mutual fund shares and corporate and municipal bonds and Treasury securitiesSource: Pew Research Center tabulations of Survey of Income and Program Participation data
Stock Ownership 2005 Stock Ownership 2011
Share of Households
Owning Stocks or
Bonds
Median Value of Stocks and Bonds if Owned
Share of Households
Owning Stocks or Bonds
Median Value of Stocks and Bonds if Owned
All 57 $47,046 56 $52,933
White 64 $56,455 63 $63,647
Black 36 $21,171 37 $21,439
Hispanic 32 $18,818 30 $23,480
Asian 60 $55,279 61 $56,659
In 2012 Dollars
Stock Ownership, 2005 and 2011
Demographic Correlates of Wealth Building
Household Wealth:The Role of Age, 2010
Source: U.S. Census Bureau
Household Wealth:The Role of Education, 2010
Source: U.S. Census Bureau
Household Wealth:The Role of Income, 2010
Source: U.S. Census Bureau
