Earnings gain, wealth loss: while black income rose to its highest level, black net worth shrank.
Employment rates rose dramatically for African Americans during the latter part of the 1990s. That, coupled with an increase in wages, contributed to higher black family incomes in 2000, notes the report's author, Michael A. Stoll, associate professor of policy studies and associate director of the Center for the Study of Urban Poverty at UCLA.
Over the past decade, the black-white family income ratio has increased from 0.54 in 1990 to 0.58 in 2000. an indication that African Americans have made up some small ground relative to whites. A major explanation for the racial gap in family income is that "African Americans are less likely to be married and are more likely to have families headed by females than are whites. says Stoll, Thus, "black families have fewer members contributing to family income.
The median income for black households remained relatively unchanged: $30.158 between 2001 and 2002. dropping to $29.668 between 2002 and 2003 due to higher unemployment rates among African American professionals. What is even more striking is that the wealth gap between white and black households has widened since the 2001 recession and jobless recovery. The median net worth (assets minus liabilities) of blacks was only $5,988 in 2002. Debts mounted while assets dwindled among families, especially when one or two members were out of work.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||[Facts & Figures]|
|Date:||Jan 1, 2005|
|Previous Article:||Top black Citigroup exec resigns.|
|Next Article:||Mortgage help for black college students: the Congressional Black Caucus Foundation promotes home buying at HBCUs.|
|Prescription for wealth.|
|THE TRUE MEANING OF WEALTH.|
|About this issue.|
|Social security outcomes by racial and education groups.|
|Take control of your financial life.|