Search

Most studies of the economic progress of African Americans have focused on income or narrower measures, such as learning, to assess the extent to which any gains relative to other ethnic groups can be attributed to factors such as declining racial discrimination, affirmative action policies, changes in industrial composition, or a narrowing of the educational gap between African Americans and the rest of the population. This analysis explores how African Americans have fared in terms of wealth, a less well-known factor. The main source of data is the Panel Study of Income Dynamics (PSID) (1984, 1989, and 1994). During the study period, the ratio of average wealth between African Americans and Whites remained almost constant. The analysis suggests that it will be very difficult for African Americans to make up significant ground relative to Whites with respect to wealth. If the racial income gap were closed, it would take 72 years for the racial wealth gap to close. The implications of these findings for public policy are discussed. An appendix contains information about the PSID data. (Contains 9 tables and 36 references.) (SLD)

In recent years, the gap between high and low earners in the United States has widened. The young, the less educated, and blacks have more instability in their earnings than do those who are older, more educated, or white. (Author)

Cluster analysis grouped 621 jobs into 6 "contours" showing that from 1973-1990 employment distribution shifted away from 2 middle-quality to the 2 highest-quality contours; no change was apparent in the 2 lowest quality. Black and Hispanic men were affected by a worsening job mix and drop in the quality of low-skill jobs. Women experienced a shift away from lowest-quality contours and higher real earnings growth within each contour. (SK)

The earnings gap between more and less educated workers widened during the 1980s. Changes in occupational demand accounted for roughly one-third of the increase. (Author)