Simulating How Large Policy Proposals Affect the Black-White Wealth Gap

Christian E. Weller (), Connor Maxwell () and Danyelle Solomon ()
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Christian E. Weller: University of Massachusetts Boston

Journal of Economics, Race, and Policy, 2021, vol. 4, issue 3, No 5, 196-213

Abstract: Abstract The wealth gap between African-American and White households has persisted for decades, prompting policymakers and experts to suggest several large-scale interventions. We evaluate the possible impact of five such proposals on the Black-White wealth gap. These interventions include debt-free college, baby bonds, civil rights enforcement in housing markets, credit market regulations enforcement, and a national retirement savings plan. Using simulations anchored in data and the existing literature, we conclude that baby bonds would have the single largest effect. But a large wealth gap would remain, even if all five proposals were promptly enacted. Only targeted cash or liquid asset transfers to African-Americans can overcome the persistent wealth difference with White households.

Keywords: Inequality; Race; Discrimination; Wealth (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41996-020-00077-8

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