Do Family Structure Differences Explain Trends in Wealth Differentials?
Robert Lerman ()
Review, 2017, vol. 99, issue 1, 85-101
Race and ethnic wealth differentials are wide and increasing. Some of the gaps are associated with education differences, but education alone cannot account for the substantially higher net worth of White families than of Black and Hispanic families. As of 2013, the median wealth of Black college graduate families had fallen to only 13 percent of the median wealth of White families. One possible explanation is the significantly lower shares of married couple and married parent households among minorities. For example, even among college graduates, only 41 percent of Black family heads were married, compared with 68 percent of White family heads. Did these trends in family status contribute significantly to differences between Whites, Blacks, and Hispanics in the declines in wealth among college graduates? The author finds that family status changes between 2007 and 2013 were too small to play a large role and even married couple families among Blacks and Hispanics suffered sharp declines in home equity and net worth. Still, married couples retained at least a 70 percent advantage over the unmarried groups.
JEL-codes: J12 I24 J15 D31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.20955/r.2017.85-101 http://dx.doi.org/10.20955/r.2017.85-101 (text/html)
https://files.stlouisfed.org/files/htdocs/publicat ... th-differentials.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:00075
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by ().