The Income and Wealth Gap

The United States continues to experience economic inequality and see large gaps in wealth and income by race, gender, and many other slices of the population. Understanding the breadth and extent of these gaps is key to formulating strategies to create positive impact. 

HOUSEHOLD INCOME

Median Black income is more than $2,000 below where it was in 2000.

Source: Economic Policy Institute

Women on average earned 82 cents for every $1 earned on average by men in 2018. Working women overall earned approximately $545.7 billion less than male workers in 2019. If the wage gap didn't exist, working women would've received an additional $9,613.13 per person.

Source: Center for American Progress and Investopedia

The economic impact of the coronavirus pandemic is hitting women and people of color particularly hard, adding to the income gap:

Latino households with children reported serious financial problems during the outbreak, including depleting savings, trouble paying credit card bills and other debt, and affording medical care.

Source: Harvard School of Public Health

Black households with children reported serious financial problems during the outbreak, including depleting savings, trouble paying credit card bills and other debt, and affording medical care.

Source: Harvard School of Public Health

Native American households with children reported serious financial problems during the outbreak, including depleting savings, trouble paying credit card bills and other debt, and affording medical care.

Source: Harvard School of Public Health

White households with children reported serious financial problems during the outbreak, including depleting savings, trouble paying credit card bills and other debt, and affording medical care.

Source: Harvard School of Public Health

A third of the working women 25 to 44 years old who are unemployed said the reason was child care demands. Only 12 percent of unemployed men cited those demands. There are 4.5 million fewer women employed in October than there were a year ago.

Source: Census Bureau 

FAMILY WEALTH

1 in 50 black families have a worth of more than $1 million opposed to 1 in 7 white families

Source: Urban Institute

A large factor in family wealth is home ownership

A study found that over the life of a home loan Black Americans pay more per year in mortgage interest, mortgage insurance premiums, and property taxes than white families.

Source: MIT and Business Insider

The difference between the average home value in a predominantly white neighborhood and a predominantly Black neighborhood was $164,000. This gap has almost doubled since 1980.

Source: Oxford and Business Insider

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