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Family Connections and the Black-White Wealth Gap among Middle-Class Families
Abstract
Recent scholarship has struggled to explain the large gaps that exist between the wealth that is amassed by white families compared to black families. These gaps exist in the population at large, even when one restricts one's analysis to middle-class families exclusively. This paper examines the connection between poverty among kin and wealth accumulation among middle-class families. Using data from the Panel Study of Income Dynamics, it finds evidence to support the hypothesis that part of the reason that black families have limited wealth is due to the fact that they are more likely to have poor relatives in their family tree.
... The focus of our examination is across and within generations of the same family tree that have grown up in different public policy regimes. Using panel data on U.S. families, we extend the breadth and depth of the work of Chiteji and Hamilton (2002). We find that, compared to their white counterparts, third-generation, middleincome Black families are disproportionately exposed to relatives who face poverty, unemployment, and wealth disparity. ...
... Indeed, Chiteji and Hamilton (2002) find that middle-income Black families are linked to a higher prevalence of economic insecurity in relatives (parents and adult siblings), which is the third largest contributor to the racial wealth gap, below that of an indicator of permanent income and the wealth holdings of their parents. This paper updates estimates of the analysis by Chiteji and Hamilton (2002), extends the breadth and depth of economic insecurity of relatives, and widens the scope of the intergenerational framework to grandparents, parents, adult children, and cousins. ...
... Indeed, Chiteji and Hamilton (2002) find that middle-income Black families are linked to a higher prevalence of economic insecurity in relatives (parents and adult siblings), which is the third largest contributor to the racial wealth gap, below that of an indicator of permanent income and the wealth holdings of their parents. This paper updates estimates of the analysis by Chiteji and Hamilton (2002), extends the breadth and depth of economic insecurity of relatives, and widens the scope of the intergenerational framework to grandparents, parents, adult children, and cousins. ...
Much research documents that middle-income households are facing high prevalence of economic insecurity associated with altruistic transfers to relatives in need. The focus of our examination is across and within generations of the same family tree that have grown up in different public policy regimes. Using panel data on U.S. families, we extend the breadth and depth of the work of Chiteji and Hamilton (2002). We find that, compared to their white counterparts, third-generation, middle-income Black families are disproportionately exposed to relatives who face poverty, unemployment, and wealth disparity. Additionally, we find that economic insecurity in the family tree is one of the largest contributors to the Black-White wealth gap.
... establishing the basis for wealth disparities before the 1970s. These historic differences in access to investments continue to contribute to disparities in wealth holdings through inheritances and gifts across generations as well as the financial demands of parents and grandparents without the wealth to support themselves postretirement (Chiteji and Hamilton 2002;Heflin and Pattillo 2002;Toney and Hamilton 2022). ◼ Structural factors contribute to racial and gender differences in how much disposable income individuals have for saving or investing, and what kind of financial services and institutions they have access to. ...
... This is likely to mean that Black women are the least likely to receive intergenerational wealth transfers across race-gender groups. If women are more likely to financially support family members and Black Americans are more likely to have low-income family members who need financial support (Chiteji and Hamilton 2002;Heflin and Pattillo 2002;Toney and Hamilton 2022), Black women are likely to carry more of a burden in financially supporting family than other race-gender groups. ...
Black women hold less in wealth than any other race-gender group in the US. We know of at least three factors that are likely to contribute to this persistent inequity. First, Black Americans and women historically faced exclusion from investments such as homeownership through lack of access to financial services. Second, Black Americans and women face contemporary discrimination in the labor, housing, and financial markets, which means that Black women are paid less, their homes are worth less, and they receive more loan rejections than any other group. Finally, historical and contemporary experiences with structural barriers and structural opportunities influence how people interact with their finances, which can affect behavior such as with risk aversion that we know is higher among Black Americans. In this study, we build on these lessons from prior studies of wealth inequality to (1) extend our understanding of wealth gaps beyond either race or gender to look at race-gender wealth gaps and (2) understand how historic experiences of structural inequality, contemporary experiences of structural inequality, and the cultural effects of both on decisionmaking interplay to produce race-gender wealth gaps.
... Various behavioral explanations for the racial wealth gap have been examined, including differences in the receipt of inheritances (Blau and Graham 1990;Menchik and Jianakoplos 1997;Gittleman and Wolff 2004), permanent income (Altonji and Doraszelski 2005), saving behavior (Altonji and Doraszelski 2005;Gittleman and Wolff 2004), and cultural differences in attitudes toward risk, financial decision making, time preference, or expectations of family support (Chiteji and Hamilton 2002;Scholz and Levine 2004;Boshara et al. 2015). With the exception of inheritances-which Menchik and Jianakoplos (1997) estimate explain 10-20% of the racial wealth gap-and differences in parental and sibling need-which Chiteji and Hamilton (2002) find explains up to 27% of the racial wealth gap-the aforementioned behavioral explanations are only weakly supported by the data. ...
... Various behavioral explanations for the racial wealth gap have been examined, including differences in the receipt of inheritances (Blau and Graham 1990;Menchik and Jianakoplos 1997;Gittleman and Wolff 2004), permanent income (Altonji and Doraszelski 2005), saving behavior (Altonji and Doraszelski 2005;Gittleman and Wolff 2004), and cultural differences in attitudes toward risk, financial decision making, time preference, or expectations of family support (Chiteji and Hamilton 2002;Scholz and Levine 2004;Boshara et al. 2015). With the exception of inheritances-which Menchik and Jianakoplos (1997) estimate explain 10-20% of the racial wealth gap-and differences in parental and sibling need-which Chiteji and Hamilton (2002) find explains up to 27% of the racial wealth gap-the aforementioned behavioral explanations are only weakly supported by the data. Differences in savings behavior cannot explain the racial wealth gap: conditional on income, evidence suggests Blacks save slightly more than Whites Darity and Mullen 2020). ...
Using data on household balance sheets from the Survey of Consumer Finances and data on macroeconomic rates of return from Jordà et al. (Q J Econ. 134(3):1225–1298, 2019) we construct two alternative series for household rates of return by race from 1989 to 2016. Our estimates suggest a persistent racial gap in the rate of return on assets between 1 and 4 percentage points. The gap in returns remains even after conditioning on demographic factors, labor market factors, credit history, portfolio composition, household attitudes toward savings, financial literacy, and inheritance—suggestive of a role for discrimination. Recentered influence function (RIF) decompositions indicate between 40 and 53%—1.2 to 1.6 percentage points—of the difference in median returns between Black and White households is unexplained by observable characteristics. A standard Oaxaca-Blinder decomposition suggests that differential rates of return can explain up to 14% of the racial wealth gap at the mean. Finally, our data on differential rates of return allow us to effectively rule out explanations for the racial wealth gap based on myopia or excessive time preference. Given observed series for consumption and rates of return, a standard lifecycle model requires Black households to discount the future less than White households in order to match the data.
... Impoverished networks have been suggested as an explanation for racial and ethnic wealth gaps also; instead of saving and investing, it has been found that these minority groups are supporting their kin (O'Brien 2012). In the minority "culture of mobility" paradigm, it is suggested that those minority-group individuals who become middle-class must negotiate relations with poorer kin, limiting their further upward mobility (Chiteji and Hamilton 2002;Neckerman, Carter, and Lee 1999). Indeed, blacks and Hispanics have been found to take more responsibility for the welfare of their kin, expressed in the idea of "linked fate" (Dawson 1994). ...
... Drawing on theory and previous literature, I formulate competing hypotheses about the role of racial and ethnic differences in predicting the outcomes for those who move into an extendedfamily household as guests (H3) and as hosts (H4). Drawing on the minority culture of mobility paradigm (Chiteji and Hamilton 2002;Neckerman et al. 1999): ...
In times of hardship, moving in with family is one strategy for alleviating economic deprivation and uncertainty. The ability of the family to buffer against poverty may vary by the resources available to and the economic needs of individuals. I assess how the formation of extended-family households is associated with a move into or out of poverty and how this association varies by race and ethnicity, since economic resources and norms around extended-family households differ. Using longitudinal data that span four years, I estimate linear fixed effects regression models to assess how changes in living arrangements are related to changes in poverty. I find that moving into an extended-family household reduces poverty, especially for the joining family unit. Most of this poverty reduction occurs through a family safety net, with a non-poor family taking in poor family units.
... In other scholarship, Black women expressed a need to help others, including their extended family and fictive kin, even when it could have detrimental effects on their financial, physiological, and psychological well-being (Chiteji & Hamilton, 2002;Higginbotham, 2001;Woods-Giscombé, 2010). Scholar Cheryl Woods-Giscombé (2010) sought out to develop a Superwoman Schema (SWA) by conducting focus groups with Black women ages 25 to 45. ...
This article reviews the changing Black family and households. The core theme is to understand the uniqueness of those single and living alone in the Black middle class-the "Love Jones Cohort"-and how their intersecting identities of race, class, gender, and singleness inform their lifestyle, shape how they manage life decisions, and their relationship to policy as well as family law and family court. This essay moves beyond the popularized and omnipresent inquiry: "Why are Black women not getting married?" or "Why are there so many single professional Black women?" This line of questioning throws the spotlight squarely on Black women's individual dating practices, while often ignoring structural factors that undergird those decision-making processes. It implies that because of the individual actions of the Love Jones Cohort, specifically Black women, they are somehow at a deficiency if they are not married and child-free, rendering them invisible as a family. This article discusses the legal implications of the presence of the Love Jones Cohort. K E Y W O R D S black families, family of one, singleness, structural racism, women of color Key points for the family court community • The concept of the family needs to be reframed, culturally and structurally, to include the growing number of persons who remain single and live alone.
... At the median in the United States, Black households own about $24,100 in wealth compared to white households $188,200 (Bhutta et al., 2020). As Rucks-Ahidiana (2022) points out, between 17 and 57% of the racial wealth gap is not explained by racial discriminatory policies, inheritance, or intervivo transfers (Blau & Graham, 1990;Chiteji & Hamilton, 2002;Conley, 1999Conley, , 2001Keister, 2000;Shapiro, 2004;Thompson & Suarez, 2015). While increasing financial literacy on an individual level will not close wealth gaps (Hamilton & Darity, 2017), Rucks-Ahidiana (2022) argues that understanding people's financial behavior and decision-making does help explain the role of culture, namely institutions and race as culture, in the racial wealth gap. ...
This study uses the theories of financial tool-kits and family financial socialization to examine the messages Black women received about money from their caregivers during their childhoods. Prior studies show there are race and gender wealth gaps due to structural factors and that there is stratification by race and gender in financial knowledge and behavior outcomes. This study explores how Black families socialize their daughters about money and how this shapes their financial knowledge and behavior in middle adulthood. I use interviews with 28 Black women to demonstrate the content and methods Black parents used during participant’s upbringings to teach them about money management. I found women elders play a significant role in developing participants’ financial skills and knowledge. They do this primarily through modeling and experiential learning while direct communication was used for lessons on combining resources with a romantic partner. The findings show how Black families transfer the financial knowledge they have to prepare the next generation while operating under the constraints of financial exclusion.
... Racial and ethnic wealth disparities are substantial and persistent in the United States (Chiteji & Hamilton, 2002;Conley, 2000;Oliver & Shapiro, 2006). The largest wealth disparity is between Black and White Americans, with White Americans having six times the per capita wealth of Black Americans (Derenoncourt et al., 2022). ...
This paper examines the financial health of racial-ethnic groups in Tulsa, Oklahoma, nearly a century after the 1921 Tulsa Massacre. We use data from the Tulsa National Asset Scorecard for Communities of Color (NASCC) survey to assess the financial health of two demographic groups that were historically the victims of racial violence - Native Americans and Black Americans. Specifically, we investigate financial outcomes a century after these groups made significant economic gains during the Tulsa oil boom in the early 1900 s and were subsequently victimized by racial violence. We find that Black households have statistically significantly less wealth and income than Whites in Tulsa. Our decomposition analysis shows household demographic differences between Blacks and Whites largely do not explain these wealth and income gaps, suggestive of historical discrimination. While in the case of the Native American tribes and Whites, the findings generally show no statistical significance. Compared to other NASCC-surveyed cities that did not experience destruction to the level of the Tulsa Massacre, the Black-White wealth and income gaps and the unexplained portion of the decompositions are the largest in Tulsa. Our results provisionally suggest that past exposure to racial violence can have long-term effects on the economic outcomes of the affected groups decades later.
... Many parents described utilizing their broader social networks for support in purchasing materials such as museum memberships or learning materials for their children. Understanding how families have access to these larger support systems is critical, especially since there are likely to be systematic differences in which parents can rely on other family members or friends for financial support, particularly by race/ethnicity (Chiteji & Hamilton, 2002;Gosa & Alexander, 2007;Solomon & Weller, 2018). For example, one study found that Black adults who were low-income were half as likely to have a sibling classified as middle class than were White adults with low-incomes, possibly due to fact that these Black adults were also much more likely to have grown up in poverty themselves compared to White adults with low-income (Heflin & Pattillo, 2006). ...
A long history of empirical research demonstrates that children of low-socioeconomic status (SES) begin school behind their peers and that enrichment activities in the home environment mediate these disparities. This past work overlooks the considerable heterogeneity in the parenting practices of families from low-SES backgrounds. To address this limitation, this study examined home enrichment practices among families with low-SES in greater detail to obtain a nuanced view of the experiences and challenges facing socioeconomically disadvantaged parents. We conducted in-depth, qualitative interviews with 13 mothers of three- to five-year-old children with low-SES, addressing their enrichment activities in the home and any challenges or barriers that interfere with enrichment activities. Parents were also asked to report on their home enrichment practices through a survey measure. All parents described substantial challenges in attempting to provide opportunities for learning with their young children but also described activities that they did engage in, along with a variety of strategies for overcoming challenges. Comparable challenges and strategies were noted by mothers with both high and low scores on a traditional survey measure of home learning activities, suggesting these measures may miss important learning opportunities that parents in low-SES contexts provide for their children.
... The wealth gap between Whites and African Americans in the U.S. is strikingly large: the median white household's net worth in 2010 was just under $139,000, while the median African American's net worth was about $17,000 (Kochhar & Fry, 2014). The financial help that is transferred between African American households accounts for at least some portion of this gap (Chiteji & Hamilton, 2002). In this sample, financial transfers were also depleting the income of non-working, retired family members. ...
... Some studies have suggested that Blacks are more likely than Whites to provide financial support to family and extended family (Dyer, Nenque and Hill, 2014). Black parents are more likely than White parents to expect their children to help them financially as they age (Chiteji and Hamilton, 2002); more than 80% of Black parents expect to be supported (Jones, 2017). These greater family obligations may prevent BWEs from investing their funds for their own personal advancement. ...
While Black women entrepreneurs have the highest nascent entrepreneurship rates, they also significantly underperform their White counterparts. As some scholars have argued, the primary cause of this disparity may result from differences in access to financial capital. Utilizing a stratification economics lens, this chapter analyzes the root causes of the financial capital access gap among Black women entrepreneurs. Wealth, discrimination by financial institutions, credit history, student loan debt, negative social capital, lack of support and perceptions of illegitimacy from social networks, and family structure disadvantages are identified as structural factors driving the financial capital access gap. It is further argued that the COVID-19 pandemic will exacerbate some of these conditions. Policy recommendations are made, including increased non-traditional lending models such as character-based and forgivable loans, greater transparency of race in lending through the implementation of Section 1071 of Dodd-Frank, and student loan amnesty.
... Research that explores the role of neighborhoods and schools as predictors of the long-term consequences of this economic situation (Johnson and Schoeni 2011) documents how early-life initial conditions shape and influence subsequent adult outcomes, while Charles and Hurst (2003) explore the intergenerational transmission of wealth, demonstrating that-independent of bequests-income, education, and preferences for asset-holding class type operate as among the most important explanatory factors in the transmission of wealth. Chiteji and Hamilton (2002) find that, in contemporary times, relatively upwardly mobile Blacks operate as a financial buffer for less-advantaged family members, thereby constraining their own subsequent wealth accumulation. Related to this, McKernan et al. (2014) demonstrate that a meaningful share of the Black-White contemporary wealth gap can be explained by differences in private transfers across generations. ...
We explore the contributions of Black economists to research on major economic and social policy problems in the United States. We focus on applications in education, poverty and economic mobility, and public finance to extract common themes and patterns. The major themes that emerge include (i) Black economists’ examination of individual versus structural explanations for economic outcomes, (ii) the role played by race and discrimination, (iii) the endogenous determination of race, and (iv) the nature of objectivity and positionality in economic research. A unifying theme is a willingness of many Black economists to engage critically on economic policy issues, using frameworks both from within as well as outside of mainstream neoclassical economics.(JEL A11, D72, I23, I28, I32, J15, K42)
... A focus on wealth rather than other oftenused metrics (e.g., income, education) for assessing the relationship between race and socioeconomic status confirms that reaching the American middle class is more elusive for Black households. For example, middle-class Black Americans are less likely to have relatives or other family members in a similar economic position and are more likely to have siblings who are exposed to poverty (Chiteji and Hamilton 2002). Black Americans are less likely to anticipate and receive inheritances, and if they do, the amount is significantly lower than White Americans . ...
Using data from the National Longitudinal Study of Youth 1997 cohort, the study explores the intersection of labor force attachment and economic inequality. Using a wealth-based definition of middle-class status, changes in wealth inequality among the working and managerial class are examined. Results indicate that Black and Latinx young adults are disproportionately working class and that racialized identity is a stronger predictor of wealth attainment than occupational classifications among Black young adults. Wealth differentials by race are not static; they are growing over time, with downward mobility and lower growth experienced by both Black working and managerial class young adults.
... The findings from the study presents several potential implications for the economic well-being of racial minorities and immigrant groups. For racial groups that lack socioeconomic heterogeneity (Chiteji & Hamilton, 2002;Heflin & Pattillo, 2006), providing financial support to family members and friends in need may be a main contributor of economic instability for members of the Black and Native American middle class. Compared to native-born Whites ($124,828) and native-born Latinos ($44,390) Mexican immigrants who have lived in the U.S. for 10 years or less have a net worth of $2,526 (Keister et al., 2016). ...
Interpersonal relationships within social networks provide resources for individuals to overcome financial hardships and emotional uncertainty. One form of support, giving money to family members and friends (i.e., informal financial assistance), has received little empirical attention, even when it comes at an economic and social cost to the person providing support. Drawing on negative social capital theory, it is hypothesized that racial minorities and immigrants may be more likely to provide monetary support to members of core discussion networks, given the persistent economic embedded in their social networks. The objective of this study is to examine i) racial differences in providing financial assistance ii) how race moderates the relationship between socioeconomic status (SES) and providing financial assistance iii) how race moderates the relationship between nativity status and providing financial assistance. The results of this project, using logistic regression analyses of the 2017 Panel Study of Income Dynamics (PSID), find that higher SES Black and Native American individuals are more likely than White individuals of similar SES, to provide informal financial assistance to members of core discussion networks. Foreign-born Black and Hispanic individuals are significantly more likely to provide money to members of networks than their foreign-born White counterparts. Moving beyond previous research, this study demonstrates the nuanced patterns of financial giving, and how they vary by SES and nativity for Black and Hispanic individuals compared to White individuals. Advisor: Jeffrey A. Smith
... Scholars have recently studied the life experiences of middle-class Black families 156,157 . This research line has shown that middle-class families of color, particularly Blacks, experience their class and social status differently compared to their middle-class White counterparts. ...
Background:
In the United States, due to residential segregation, racial minorities and families with low socioeconomic status (SES) tend to live in less safe neighborhoods than their White and high SES counterparts. As such, in the US, race and SES closely correlate with neighborhood safety. Due to the high chronicity of stress in unsafe neighborhoods, perceived neighborhood safety may be a mechanism through which race and SES are linked to children's mental health. Simultaneously, race and SES may alter the effects of perceived neighborhood safety on children's mental health.
Aim:
To explore racial and SES differences in the effects of neighborhood safety on children's internalizing symptoms, we compared racially and SES diverse groups of American children for the effects of parents' perceived neighborhood safety on children's internalizing symptoms.
Methods:
This cross-sectional study included 10484 children from the Adolescent Brain Cognitive Development (ABCD) study. Mixed-effects regression was used for data analysis. The predictor variable was parents' perceived neighborhood safety which was treated as a continuous measure. The primary outcome was children's internalizing symptoms reported by children. Race, parental education, household income, and family structure were moderators.
Results:
Overall, the parents' high neighborhood safety was associated with lower levels of internalizing symptoms in children. Race and household income showed statistically significant interactions with subjective neighborhood safety on children's internalizing symptoms. Parents' perceived neighborhood safety showed a stronger inverse association with children's internalizing symptoms for Black than White families. Parents' perceived neighborhood safety showed a stronger inverse association with children's internalizing symptoms for high income than low-income families. Parental education or family structure did not show any significant interaction with parents' perceived neighborhood safety on children's internalizing symptoms.
Conclusion:
The degree to which neighborhood safety may be associated with children's internalizing symptoms may depend on race and household income. Some of the effects of race and SES on children's mental health outcomes may be due to interactions with contextual factors such as neighborhood safety. More research is needed on why and how diverse racial and SES groups differ in the association between perceived neighborhood safety and children's well-being.
... The burdens that people carry extend beyond their own experiences to the worries of others (Woods-Giscombé et al. 2015). We cannot tell from our data what the specific worries of participants are-concern about sheltering children from racism, caring for loved ones who are sick, recovering from an abusive relationship, assisting family members experiencing financial strain of their own (Chiteji and Hamilton 2002)-but we suggest that high levels of social network stress may reflect one's position in systems of inequality. ...
Objectives
The World Health Organization estimates that almost 300 million people suffer from depression worldwide. African Americans are understudied for depression-related phenotypes despite widespread racial disparities. In our study of African Americans, we integrated information on psychosocial stressors with genetic variation in order to better understand how these factors associated with depressive symptoms.
Methods
Our research strategy combined information on financial strain and social networks with genetic data to investigate variation in symptoms of depression (CES-D scores). We collected self-report data on depressive symptoms, financial strain (difficulty paying bills) and personal social networks (a model of an individual's social environment), and we genotyped genetic variants in five genes previously implicated in depressive disorders (HTR1a, BDNF, GNB3, SLC6A4, and FKBP5) in 128 African Americans residing in Tallahassee, Florida. We tested for direct and gene–environment interactive effects of the psychosocial stressors and genetic variants on depressive symptoms.
Results
Significant associations were identified between high CES-D scores and a stressful social environment (i.e., a high percentage of people in participants' social network who were a source of stress) and high financial strain. Only one genetic variant (rs1360780 in FKBP5) was significantly associated with CES-D scores and only when psychosocial stressors were included in the model; the T allele had an additive effect on depressive symptoms. Sex was also significantly associated with CES-D score in the model with psychosocial stressors and genetic variants; males had higher CES-D scores. No significant interactive effects were detected.
Conclusions
A stressful social environment and material disadvantage increase depressive symptoms in the study population. Additional associations with FKBP5 and male sex were revealed in models that included both psychosocial and genetic data. Our results suggest that incorporating psychosocial stressors may empower future genetic association studies and help clarify the biological consequences of social and financial stress.
... (16) They do mention the myriad of problems associated with imperfect information but not that information is costly to acquire, and this poses a huge obstacle to efficient outcomes and to human flourishing, particularly for those with low-income, inasmuch as they cannot afford to obtain sufficient information to make solid decisions. This is especially true in the presence of real uncertainty and when sequential complex decisions are involved (points 31, 33) (Akerlof 2002;Stiglitz 2009;Chiteji and Hamilton 2002;Greenwald and Stiglitz 1986). In turn, this Achilles heel of laissez faire, places poor people at a distinct disadvantage especially in the Information Age and implies that the poor are unable to make good decisions that would enable them to escape poverty and flourish (points 7, 8). ...
In the view of Samuel Bowles and Wendy Carlin, macroeconomics 101 requires serious changes. They advocate instead the use of the new CORE textbook, The Economy, to which they contributed. The author suggests additional concepts to introduce to students at the beginning level for a balanced sense of the workings of the economic system, in this comprehensive analysis.
... To explain causes of MDRs, scholars have studied the daily experiences of middle-class Black families (Chiteji & Hamilton, 2002;Weitzman, Byrd, & Auinger, 1999). Reviewing the work of the above-mentioned research on Black middle class suggests that middle-class non-Hispanic Black families experience their class and social status differently when compared to middle-class non-Hispanic White families (Hudson, Sacks, Irani, & Asher, 2020). ...
Background:
Due to a pattern known as Marginalization-related Diminished Returns (MDRs), historically oppressed non-Hispanic Black Americans show weaker effects of economic status on health and development, when compared to socially privileged non-Hispanic White Americans. Such MDRs are also documented for the effects of economic status on the school performance of non-Hispanic Black children. However, the existing knowledge is minimal on similar diminished returns on children's intelligence.
Aim:
To compare racial and ethnic groups for the effect of subjective economic status on children's cognitive performance, we compared non-Hispanic White and non-Hispanic Black children for the effects of subjective economic status on children's matrix reasoning.
Methods:
This cross-sectional study included 7898 children from the Adolescent Brain Cognitive Development (ABCD) study. The predictor variable was subjective economic status, which was treated as a continuous measure. The primary outcome was children's matrix reasoning, a domain of cognitive performance, measured by the Wechsler Intelligence Scales for Children-IV (WISC-V) matrix reasoning total score.
Results:
Overall, high subjective economic status was associated with higher matrix reasoning score. Race showed a statistically significant interaction with subjective economic status on children's matrix reasoning score. This interaction suggested that high subjective economic status has a smaller boosting effect on increasing matrix reasoning score for non-Hispanic Black children relative to non-Hispanic White children.
Conclusion:
The degree by which subjective economic status correlates with matrix reasoning score, an important domain of cognitive performance, depends on race and racialization. Non-Hispanic Black children may show weaker gains in matrix reasoning from their subjective economic status than their non-Hispanic White counterparts. To minimize the racial gap in cognitive performance, we need to address diminished returns that occur as a result of the racialization of racial and ethnic minority children. Not only should we equalize economic status, but also increase the marginal returns of economic status for racial minorities, particularly non-Hispanic Black families. Such efforts require public policies that go beyond access and also consider how we can empower non-Hispanic Black communities and families so they can more effectively leverage and utilize their economic resources to secure measurable and tangible outcomes. Structural and societal barriers such as residential and school segregation may hinder non-Hispanic Black children from receiving the full effects of their family-level economic status on a variety of outcomes, including their cognitive performance.
... Additionally, studies have noted that African Americans and Hispanics are more likely than Whites to have disadvantaged kin members in need of assistance in the US, reflecting long-standing racial inequalities in the distribution of economic resources (Chiteji and Hamilton 2002;Fischer 1982;Heflin and Pattillo 2006;Tigges et al. 1998;Verdery and Campbell 2020). Members of those groups thus face more demands from relatives compared to Whites. ...
Credit card debt stands at over $1 trillion in the US and grows continuously. Scholars have argued that high (and growing) levels of credit card debt are attributable in part to rising economic vulnerabilities, combined with a thinning public safety net, credit cards being increasingly employed to make ends meet in this context. This paper extends this line of work by stressing that individuals and households do not rely on their credit cards only to mitigate their own financial hardships, but also those experienced by their non-coresidential kin members. More specifically, building on the notion that kin networks can constitute a source of negative social capital, we argue that individuals often accumulate credit card debt as they attempt to provide monetary assistance to their relatives in need. We also show that this effect is particularly strong in lower-income groups and in African American communities, in which need levels are especially high. Based on random and fixed effects analyses of data from the Panel Study of Income Dynamics, these insights extend scholarship on both kin networks of support and the sources of credit card debt.
... Importantly, financial ties to extended family members represent not only potential sources of support but also a drain on resources (Chiteji and Hamilton 2002). Theoretical work conceptualizes this potentially detrimental impact of familial ties as negative social capital, or "the pressure on an individual actor to incur costs by virtue of membership in social networks or other social structures" (O'Brien 2012:378). ...
Research shows that extrahousehold kin economic resources contribute to the racial gap in transitions into homeownership, but the extent to which these resources matter for racial disparities in exits from homeownership is less understood. Using longitudinal data from the Panel Study of Income Dynamics, 1984-2017, we examine the role of extrahousehold kin wealth and poverty in shaping racial inequalities in the risk of exiting homeownership. Our nonlinear decomposition results indicate that racial differences in family network resources explain a nontrivial portion of the racial gap in homeownership exit, but there is little evidence that the effects of kin resources on exit are moderated by race. Among both Black and White owners, having wealthier noncoresident kin does not lessen the negative impacts of adverse economic or health shocks on the probability of losing homeownership. Our findings have implications for policies and programs designed to buttress the ability of minority households, especially those in financial distress, to sustain the wealth-building state of homeownership.
Qualitative research has documented mothers’ critical role in supporting adult children during and after incarceration. Yet, the implications of incarceration for mothers have been relatively unexplored. Wealth research has also largely overlooked the influence of adult children on parental wealth. Using linked mother–child data from the National Longitudinal Survey of Youth 1979 (NLSY79) and the NLSY79 Child and Young Adult study, we investigate whether a child's incarceration influences mothers’ wealth and whether accounting for child incarceration history helps explain the racial wealth gap. We use an event-study analysis and fixed-effects models to assess the evidence that children's incarceration affects three forms of wealth: financial assets, homeownership, and home equity. We find significant relationships between child incarceration and maternal wealth, but the importance of current versus prior child incarceration depends on the type of wealth considered. We also find that child incarceration is much more detrimental in dollar terms for White women than for Black or Hispanic women, but the financial asset penalty associated with child incarceration is larger in percentage terms for Black women than for White women.
Literature indicates the ways that young adults –especially those from advantaged backgrounds—rely on parents during college and the transition to adulthood. Little research focuses on how the Black family reaches into college and Black college students’ provision of support to parents and other kin. The nexus of family and higher education is a rich site for investigating inequalities in educational attainment and outcomes. Based on interviews with Black undergraduates, this paper analyzes variation in familial involvement during college. It shows the ways in which Black students maintain a balancing act to meet academic responsibilities and family obligations. These practices help sustain the families they value but also reproduce class inequalities. The social organization of colleges and families imposes greater costs on disadvantaged students and offers greater benefits for advantaged students. The structure of education and constructions of family diminish obligations to family, narrow family ties, and mystify aspects of dependence, especially for disadvantaged students. Student narratives highlight the broad character of family values that often compete with academic obligations and detract from college immersion. Different forms and patterns of assistance and connection by class and gender are tied to structural resources and cultural differences, such as the place of family, the meaning of self, assessments of who counts as family, and reliance on a norm of one-way giving.
This paper documents strong pressure to share income faced by entrepreneurs in a developing country setting. This ‘kinship tax’ can distort productive decisions, including investment. A lab experiment with 361 Kenyan entrepreneurs reveals that a third of them face distortionary pressure to share income. This kinship tax is higher for men, and increasing in entrepreneurial ability. Using a pre-existing randomized cash transfer experiment, I find that only male entrepreneurs who do not face distortionary kinship taxation invest these transfers. Imposing some parametric assumptions, I estimate that kinship taxation decreases aggregate productivity among firms in this sample by one quarter.
Numerous sectors and institutions engage in ‘predatory inclusion’, purporting to satisfy the unmet needs of historically marginalized groups under exploitative terms. However, extant scholarship has yet to robustly examine why they target certain groups. Drawing on Black feminist Marxism, I theorize how predatory inclusion depends on precarity, and I redefine ‘precarity’ as a structural position of vulnerability to violence based on excess responsibilities and the denial of means to meet them – or, ‘alternativelessness’. I convey the usefulness of my definition of precarity and my theorization of the relationship between precarity and predatory inclusion through empirical sections that demonstrate how for-profit colleges (‘for-profits’) prey upon the alternativelessness of Black women, the race-gender demographic group with the highest rates of debt-financed enrollment in for-profits. By examining the training materials for admissions ‘counselors’ at for-profits, I illuminate how for-profits succeed at enrollment growth by manipulating the pain, urgency, and relationality of this precarity. I also reveal how descriptive statistics of Black women’s enrollment and financial need in for-profits correspond to the sector’s predation of precarity. I contend that precarity must be contested for the sake of ending the predatory inclusion of Black women and all others positioned alongside them as ideal prey.
Under neoliberal social provision, debt has become a primary tool for US households to pursue economic mobility and manage risk. Borrowing supports financial and non‐financial investments that, in theory, should lead to lifetime income and asset gains from which debt can be repaid. Many scholars argue, however, that reliance on credit as a welfare tool significantly increases inequality, particularly along racial lines. In this paper, I examine this process of debt‐financed asset accumulation by analyzing racial disparities in the relationship between household debt and assets. Using Survey of Consumer Finances data, I examine disparities in assets held at given debt levels across Black and White households. Results indicate that at equal debt levels, Black households' assets are between 30% and 80% lower than those of comparable White households. This suggests that White households benefit considerably more from social policies that center borrowing as a mechanism of social provision. This likely contributes to the persistence of the racial wealth gap. Racial disparities in access to credit, to homeownership, and to non‐market financial transfers like inheritances partly explain White households' higher returns, but racial gaps remain even when accounting for these factors.
Redlining refers to discriminatory lending practices based on the demographic composition of neighborhoods. The term is often attributed to boundaries drawn on maps by the Home Owners’ Loan Corporation (HOLC) in the 1930s to represent the perceived credit risk of neighborhoods. Combined with other discriminatory actions, redlining restricted access to mortgage financing for racial minorities, and areas subject to historic redlining practices still exhibit worse outcomes on various socio-economic dimensions. This study examines contemporary differences in residential housing values along historic redlined boundaries. Boundary fixed effects models are constructed using contemporary property sale data for Seattle, WA and Richmond, VA from 2000 to 2018. Results indicate that properties inside a redlined boundary continue to sell at significantly discounted prices compared to houses across the redlined border. Further investigation, using historic data from the 1930s and 1940s, finds that there was also a large and significant historic difference in housing values across the redlined boundaries at that time, including before the advent of HOLC maps. This suggests that contemporary differences in housing values are likely not a direct effect of HOLC maps but rather depict the lingering effect of broader redlining and discriminatory practices that existed before the advent of these maps.
The racial wealth gap is the largest of the economic disparities between Black and white Americans, with a white-to-Black per capita wealth ratio of 6 to 1. It is also among the most persistent. In this paper, we construct the first continuous series on white-to-Black per capita wealth ratios from 1860 to 2020, drawing on historical census data, early state tax records, and historical waves of the Survey of Consumer Finances, among other sources. Incorporating these data into a parsimonious model of wealth accumulation for each racial group, we document the role played by initial conditions, income growth, savings behavior, and capital returns in the evolution of the gap. Given vastly different starting conditions under slavery, racial wealth convergence would remain a distant scenario, even if wealth-accumulating conditions had been equal across the two groups since Emancipation. Relative to this equal-conditions benchmark, we find that observed convergence has followed an even slower path over the last 150 years, with convergence stalling after 1950. Since the 1980s, the wealth gap has widened again as capital gains have predominantly benefited white households, and convergence via income growth and savings has come to a halt.
Growing research links household financial decisions to physical and mental health status within the nuclear family. We hypothesize that mental health issues (psychological distress) outside of the nuclear family unit are a unique contributor to household portfolio allocation decisions. We use panel data and find that having at least one sibling with psychological distress decreases the probability of risky asset ownership (stocks, mutual funds), decreases risky assets as a share of financial assets, and decreases total amount of risky asset holding. These results have important policy-related implications for understanding the connection between health, portfolio allocation, and wealth building.
This study examined changes in geographic proximity to family members among race and income groups in the United States from 1981 to 2017. Close geographic proximity to family members can facilitate mutual support and strengthen family bonds. Some scholars argue that institutional sources of support have replaced many core family functions, which might mean that households are likely to live increasingly farther away from family. Advancing technology and changing labor market opportunities might reinforce this pattern. Yet, the ongoing cultural and emotional salience of family might curtail the effects of these factors on the increasing distance to family. We conducted a quantitative analysis of longitudinal data from the Panel Study of Income Dynamics (PSID). We utilized the multigenerational structure of the PSID and restricted‐use geocodes to map kin proximity at every interview from 1981 to 2017. We cross‐classified our sample by race and income, focusing on Black and White respondents across income quartiles (n = 171,501 person‐periods). High‐income White respondents showed the greatest increases in distance from kin over time, whereas proximity to kin among other race‐income groups was relatively stable. Proximate kin has become less central in the lives of high‐income White households over time, whereas close proximity to kin has been the norm over time for other racial and income groups. These results have implications for racial and income differences in kin relations over time.
Drawing from stratification economics, intersectionality, and respectability politics, The Love Jones Cohort centers on the voices and lifestyles of members of the Black middle class who are single and living alone (SALA). While much has been written about both the Black middle class and the rise of singlehood, this book represents a first foray into bridging these two concepts. In studying these intersections, The Love Jones Cohort provides a more nuanced understanding of how race, gender, and class, coupled with social structures, shape five central lifestyle factors of Black middle-class adults who are SALA. The book explores how these Black adults define family and friends and decide on whether and how to pursue romantic relationships, articulate the ebbs and flows of being Black and middle class, select where to live and why, accumulate and disseminate wealth, and maintain overall health, well-being, and coping mechanisms.
This article highlights common financial issues and concerns of affluent Black American households as they attempt to build and maintain long‐term financial stability. In so doing, we shed light on the nexus of Black families seeking professional wealth management services and Black financial planners working to meet their needs while also attempting to carve out a successful business in a profession and industry within which they are woefully underrepresented. A collaboration of a wealth inequality scholar and financial planning professionals from a wealth management company, this article outlines common planning priorities and challenges raised by African‐American families with their planning advisors. While many of these are universal, they also represent topics that are overwhelmingly prioritized by Black clients. When possible, we use information from the 2019 Survey of Consumer Finances on households located in the top quintile of the Black wealth distribution, the “affluent,” to complement the information provided by the analysts of their targeted clientele.
As COVID-19 made inroads in the United States in spring 2020, a common refrain rose above the din: “We’re all in this together.” However, the full picture was far more complicated—and far less equitable. Black and Latinx populations suffered illnesses, outbreaks, and deaths at much higher rates than the general populace. Those working in low-paid jobs and those living in confined housing or communities already disproportionately beset by health problems were particularly vulnerable. The contributors to The Pandemic Divide explain how these and other racial disparities came to the forefront in 2020. They explore COVID-19’s impact on multiple arenas of daily life—including wealth, health, housing, employment, and education—while highlighting what steps could have been taken to mitigate the full force of the pandemic. Most crucially, the contributors offer concrete public policy solutions that would allow the nation to respond effectively to future crises and improve the long-term well-being of all Americans.
Contributors. Fenaba Addo, Steve Amendum, Leslie Babinski, Sandra Barnes, Mary T. Bassett, Keisha Bentley-Edwards, Kisha Daniels, William A. Darity Jr., Melania DiPietro, Jane Dokko, Fiona Greig, Adam Hollowell, Lucas Hubbard, Damon Jones, Steve Knotek, Arvind Krishnamurthy, Henry Clay McKoy Jr., N. Joyce Payne, Erica Phillips, Eugene Richardson, Paul Robbins, Jung Sakong, Marta Sánchez, Melissa Scott, Kristen Stephens, Joe Trotter, Chris Wheat, Gwendolyn L. Wright
Objective:
This study examined racial and ethnic differences in the receipt and provision of instrumental family support.
Background:
Extended families provide significant levels of emotional and instrumental support across the life course. Despite their importance, extended family relationships and the assistance they provide are largely neglected in the literature. Further, questions remain concerning cultural variation in family support relationships and inconsistent findings on racial differences in family support in prior investigations.
Method:
This study relied on data from the National Survey of American Life-Reinterview (n=3,483) to investigate the provision and receipt of instrumental support from extended family among African Americans, Black Caribbeans, and non-Latino Whites and within high- and low-income categories for each group. Eight key measures of instrumental family support are examined: receiving and providing transportation, help with chores, financial assistance, and help during an illness.
Results:
African Americans and Black Caribbeans share similar profiles of providing and receiving instrumental family support. Both populations receive and provide assistance more frequently than do non-Latino Whites. Similarly, analyses stratified by income indicated that for low-income and high-income groups, African American and Black Caribbeans are similar to one another, and at each income category, both groups received and provided support more frequently than non-Latino Whites.
Conclusion:
Study findings are discussed in relation to conceptual and methodological differences in assessing Black-White differences across studies of family support. Attention to these issues and the specific contexts for receiving/providing family support (emergency vs. routine; intergenerational vs. extended) will help clarify inconsistent findings across studies.
In recent decades, sociologists have generally avoided explicitly discussing the role of culture in processes of social inequality. We argue that the prevailing disciplinary theory of inequality, the framework laid out in Charles Tilly's Durable Inequality, necessarily relies on cognitive processes and cultural concepts. The four primary mechanisms driving inequality—exploitation, opportunity hoarding, emulation, and adaptation—involve justification, categorization, coordination, and (e)valuation. We survey research on social inequality that illustrates each of these four processes. Our review reveals important empirical patterns about how disparities between groups emerge and endure. We observe that while sociologists often conduct work that implicitly relies on cultural concepts, other social science disciplines are also doing vital work in this area because they engage directly with cultural concepts. We identify key areas where sociologists are well positioned to use cultural concepts to uncover important findings regarding inequality, as well as to propose interventions for mitigating or preventing inequality.
Expected final online publication date for the Annual Review of Sociology, Volume 48 is July 2022. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.
La teoría económica predominante está repleta de supuestos que alimentan el racismo estructural o sistémico, pues apoya un sistema económico que perjudica gravemente a las personas del extremo inferior del espectro socioeconómico, que en Estados Unidos incluye a un número desproporcionado de hispanos, indígenas y descendientes de esclavos. El artículo analiza quince de estos supuestos que se suelen trivializar, incluido el papel crucial de los costos de información en la toma de decisiones. La información costosa implica que su adquisición por los pobres requiere una mayor proporción de su ingreso, lo que les dificulta tomar decisiones bien informadas.
The relative importance of racial and class inequality in incarceration in the United States has recently become the subject of much debate. In this paper, we seek to give this debate a stronger empirical foundation. First, we update previous research on racial and class inequality in people’s likelihood of being imprisoned. Then, we examine racial and class inequality in people’s risk of having a family member imprisoned or living in a high-imprisonment neighborhood. We find that racial inequality in prison admissions has fallen in the twenty-first century, while class inequality has surged. However, in recent years, Black people with high levels of education and income were more likely than white people with low levels of education and income to experience the imprisonment of a family member or to live in a neighborhood with a high imprisonment rate. These seemingly contradictory conclusions can be reconciled by the fact that enduring structures of racial domination have made class boundaries among Black people more permeable than they are among white people. Imprisonment in the United States is increasingly reserved for the poor. But because Black Americans are disproportionately connected to the poor through their families and neighborhoods, racial inequality exceeds class inequality in people’s indirect experiences with imprisonment.
In this article, I theorize the “financial toolkit” or the repertoires that inform financial decision‐making processes and explain why and what racial differences we should expect. I argue that while prior literature has focused on financial repertoires with large racial differences, we should expect both similar and distinct financial repertoires by race given that social networks and neighborhoods of residences are racially segregated, but mainstream media sources and national narratives create common financial discourses. Using data from the 2019 Survey of Consumer Finances, I show that while Black, Latinx, and White respondents all draw on social network and media sources for information about finances, that the financial practices they identify as ideal are only similar when articulated as broad, vague practices. Racial differences emerge among specific financial behaviors about how to engage with money. These findings contribute to our understandings of how culture contributes to the racial wealth gap, how institutions contribute to cultural toolkits, and how race informs behavior and decision‐making.
Although Blacks in the United States suffered disproportionately high unemployment, housing and wealth losses during the Great Recession, little is known about the recession’s impact on Black entrepreneurship. This study uses data from the Panel Study of Income Dynamics (PSID) to estimate the difference in probability of starting a business before and after the recession for Black and White households. While the likelihood of starting a business declined for Whites after the Great Recession there were no statistically significant changes in the rate of firm startups among Blacks. Evidence supports the prosperity pull hypothesis for White but not Black entrepreneurs.
When faced with material hardships like missing a rent payment or having telephone service disconnected, where do people find help? Using data from the Survey of Income and Program Participation, I examine the receipt of assistance following material hardships. I find that most people do not receive assistance following a hardship, but when people do receive assistance, social ties are a more common source of support than public and private safety net institutions. I find that the likelihood of receiving assistance varies by type of hardship experienced, and there has been a notable increase over time in the likelihood of receiving assistance following telephone service disconnection or utilities payment hardship. The findings also reveal differences across social and demographic groups. Overall, the findings contribute to understandings of how families make ends meet during hard times and draw attention to high levels of unmet need for assistance among households experiencing hardship.
Racial disparities in obesity are larger between Black and White college graduates compared to disparities among those who did not complete high school. A possible explanation is that Black adults with higher socioeconomic status (SES) experience unique obesogenic determinants. Black adults who have completed a 4-year college degree can report “uplift stress” from providing financial assistance to family members. The aim of this study is to determine whether the association between familial financial assistance and body mass index (BMI) varies among college-educated Black women and men. This study utilized data from an online survey of Qualtrics standing panels including 451 non-Hispanic Black college graduates. Respondents were asked if they had provided or received any monetary gift or financial help from a family member in the past 12 months as well as their height and weight. Using linear regression and multiplicative interaction terms, the association between familial financial assistance and BMI was assessed by sex. Those who reported both giving and receiving familial financial assistance had higher BMI than those who neither gave nor received assistance (β = 2.80, standard error (s.e.) = 1.16). There was a significant interaction such that this association was observed among women only (β = 6.67, s.e. = 2.32). Future studies should seek to understand the gendered impact of familial financial assistance on BMI in college-educated Black women.
Wage inequalities between identical workers of different race, ethnicity, and gender are a persistent feature of labor markets. However, most labor market models either ignore important empirical evidence or focus very narrowly on specific labor market dynamics. To better understand such wage differences, we create a labor market model that integrates firm competition for workers, employee movement between jobs in response to market signals, potential monetary frictions in the job transition process, and workers' collective action which is a function of government support. Our model shows that because of gender- and race-specific historical and social outcomes, like the relatively lower household wealth of Black and Latino families and the increased household responsibilities of women, women and minority workers are more exploitable; employers can push their wage farther below the value of their marginal product. Also, our model shows that the cumulative wage gap for non-White women is greater than the additive gaps of being nonmale and non-White. Lastly, our model shows that a reduction in government support for collective action enables employers to wield monopsony power more freely, independent of changes in employer concentration. Because certain groups are more exploitable, employers' increased capability in wielding monopsony power means increased wage differentials replicating discriminatory biases against marginalized groups of workers.
A growing body of research documents the importance of wealth and the racial wealth gap in perpetuating inequality across generations. We examine the impact of wealth on child income. Our two-stage least squares regressions reveal that grandparental wealth has an important effect on the younger generation's stock, which in turn affects the younger generation's household income. We further explore the relationship between income and wealth by decomposing the child's income by race. We find that the intergroup disparity in income is mainly attributable to differences in family background. These findings indicate that wealth is an important source of income inequality.
Background: As shown by Minorities’ Diminished Returns (MDRs), ethnic minorities show weaker than expected effects of education level on health outcomes. However, this pattern is better demonstrated for health behaviors and health care utilization than satisfaction with care. Additionally, more is known about MDRs in African Americans than the Latino population. Thus, there is a need to study MDRs of education on healthcare satisfaction in highly educated African American and Latino individuals. Objectives: We tested ethnic differences in the association between education level and satisfaction with healthcare among American adults. Methods: The National Health Interview Survey (2015) included 24,835 adults who were Latino, non-Latino, African American, or White. The independent variable was education level. The dependent variable was satisfaction with healthcare. Age, gender, marital status, employment, region, physical health (self-rated health, and chronic diseases, body mass index), and mental health (psychological distress) were the covariates. Ethnicity was the moderator. Logistic regression was used for data analysis. Results: Higher education level was associated with higher satisfaction with healthcare in White but not African Americans. In the pooled sample, African American ethnicity showed a significant statistical interaction with education level suggesting a significantly smaller effect of high educational attainment on satisfaction with healthcare for African Americans than White adults. A similar interaction could not be found for Latino ethnicity, suggesting that education similarly enhances healthcare satisfaction for Latino and non-Latino adults. Conclusion: High education level boosts satisfaction with healthcare for Whites but not African Americans.
Demographic correlates of familial and nonfamilial sources of emergency assistance among blacks were examined with data from a national probability sample (Panel Study of Income Dynamics--1980). Both family and non-kin were found to be important sources of emergency assistance. Multivariate analyses revealed age, gender, marital status, and urban/rural differences in the source of emergency assistance. The findings highlighted the critical importance of the parent-child bond across the life course. The article concludes with a discussion of the practice implications of the findings.
The rationale for the use of sample survey weights in a least squares regression analysis is examined with respect to four increasingly general specifications of the population regression model. The appropriateness of the weighted regression estimate depends on which model is chosen. A proposal is made to use the difference between the weighted and unweighted estimates as an aid in choosing the appropriate model and hence the appropriate estimator. When applied to an analysis of the familial and environmental determinants of the educational level attained by a sample of young adults, the methods lead to a revision of the initial additive model in which interaction terms between county unemployment and race, as well as between sex and mother's education, are included.
In high school and college, men and women take significantly different courses. Using data from the Survey of Income and Program Participation and the National Longitudinal Study class of 1972, the authors relate these differences in school content to sex differences in adult wages. Differences in field of highest degree account for a significant part of the male-female wage gap among college graduates, but differences in coursework account for little of the equally large wage gap between men and women with less schooling. Among college graduates, there is some evidence that the reward for taking male majors is larger for men. Copyright 1997 by University of Chicago Press.
Using data from the 1976 and 1978 National Longitudinal Surveys of young men and young women, this study examines racial differences
in the magnitude and composition of wealth and the reasons for them. On average, young black families hold 18 percent of the
wealth of young white families, and hold their wealth in proportionately different forms. Even after controlling for racial
differences in income and other demographic factors, as much as three quarters of the wealth gap remains unexplained. We speculate
on the causes for this, concluding that racial differences in intergenerational transfers and to a lesser extent barriers
to the accumulation of business and home equity most likely play a role.
In the United States, religious attendance rises sharply with education across individuals, but religious attendance declines sharply with education across denominations. This puzzle is explained if education both increases the returns to social connection and reduces the extent of religious belief, and if beliefs are closely linked to denominations. The positive effect of education on social connection is the result of both treatment and selection: schooling creates social skills and may increase people’s utility from engaging in other social activities such as church attendance. The negative effect of education on religious belief occurs because secular education emphasizes secular beliefs that are at odds with many traditional religious views.
The impact of upward mobility over three generations, on the extended kin network of black parents in the mid-Atlantic area was examined. Extensive involvement had been maintained by those born in both the middle and working classes and those living in urban and suburban sites. The reciprocal obligations of the help exchange patterns were not perceived as excessive, but were stronger for those born in the working class. Educational achievement and maternal employment peaked in the generation in which mobility occurred. Kin interaction was high with low geographic mobility. Results indicate that extended help patterns are culturally rather than solely economically based.
Abstract Conventional wisdom says that social capital is more common among families in rural communities than urban communities. Using data from the 1988 wave of the Panel Study of Income Dynamics, we compare the prevalence, type, and extent of social exchanges in these places. Results indicate that families living in rural areas are more likely to exchange exclusively with kin than are families living in urban areas. In particular, families living in rural areas are more likely to receive money help from kin than families in urban areas. Results on patterns of giving are more complex, with rural origin families with younger household heads more likely to give support to kin, and rural origin families with older heads less likely to provide such support, as compared to otherwise similar families of urban origin. Finally, only modest urban-rural differences in amounts exchanged (in dollars) are found among otherwise similar families. Overall, some of the urban-rural differences in patterns of exchange are explained by different family characteristics; however, key urban-rural differences remain, probably reflecting differences in norms and the availability of institutional support services in different areas.
This article combines the literature on kin networks and racial disparities in asset ownership. Specifically, we examine the effects of kin characteristics—sibling poverty and parental poverty, education, and occupation—on financial account ownership and home ownership. We find that kin matter for these outcomes. Having a poor sibling and coming from a poor family are negatively associated with account and home ownership while mother’s education has a positive effect. Separate analyses by race suggest that kin characteristics matter for both Blacks and Whites for account ownership, but for home ownership they are significant for Whites only. Racial differences in kin characteristics account for over half of the racial gap in account ownership, but are not important for understanding the racial gap in home ownership. The significant effects of extended family characteristics on socioeconomic well-being make a case for the inclusion of kin variables in the growing literature on wealth disparities among Blacks and Whites.
Dissertation (Ph.D)--University of Michigan.
Factors that influence family helping behavior are examined and comparisons are made between black and white families. The
question of whether family differences are due to culture or socioeconomic reasons is asked. In the analysis, tests are made
for the main and interactive effects of race. Black elderly parents give and receive more help than white elderly parents
after controlling for age and sex; however the greater amount of help that is received by older blacks is, to a large extent,
the result of socioeconomic factors. The increased amount of help that they give to the middle and younger generations appears
to be a combination of cultural and socioeconomic factors. Among black families, attitudes of respect for each generation
play a part in determining family support behavior.
Racial differences in the receipt of financial inheritances help to explain why the average difference in wealth between black and white households is larger than the average difference in income. Using data from a panel of prime-aged males and from a representative survey of the U.S. population, the authors document the greater likelihood of white households receiving an inheritance than black households. Controlling for other factors which contribute to racial differences in wealth, the authors estimate that financial inheritances may account for between 10 percent and 20 percent of the average difference in black-white household wealth. Copyright 1997 by Oxford University Press.
Based on the Survey of Consumer Finances, the distribution of wealth in the United States became much more unequal in the 1980s and that trend continued, albeit at a slower pace, in the 1990s. The only households that saw their mean net worth rise in absolute terms between 1983 and 1995 were those in the top 20 percent and the gains were particularly strong for the top one percent. All other groups were particularly strong for the top one percent. All other groups suffered real wealth losses, including the median household, and declines were particularly precipitous at the bottom. Racial disparities widened, and young households also lost out over this period. Copyright 1998 by American Economic Association.
The economic reality of inheritance — a factor of wealth accumulation having an appreciable effect on wealth distribution — is very different from conventional wisdom. One need only recall the stereotyped image of those elderly parents who do without their entire working lives so that they can leave each of their children a small patch of land. Literature offers up anecdotal images: the myth of the uncle in America as rich as Uncle Scrooge, the moral legacy that La Fontaine’s farmer bequeaths his three sons, the inheritance which star-crossed lovers will never receive, oblivious to the fact that ‘the postman always rings twice’, the heir in Labiche’s comedies whose major asset lies in having parents and uncles who are both wealthy and elderly. Besides those stereotypes, inheritance is for the majority associated with the loss of a beloved one and its ensuing consequences for the surviving family. Is inheritance only a private matter like marriage or a mere subject for crime novels, moralizing tales or light comedies — i.e. without economic implications?
The Role of Siblings as Family Caregivers
- Victor Cicirelli
Cicirelli, Victor. 1985. "The Role of Siblings as Family Caregivers." In Social
Support Networks and the Care of the Elderly, edited by William Sauer and
Raymond Coward. New York: Springer Publishing Company.
Commentary: Intergenerational Support within African-American Families: Concepts and Methods
- Chatters
- Linda
- Jayakody
- Rukmalie
Chatters, Linda, and Jayakody, Rukmalie. 1996. "Commentary: Intergenerational Support within African-American Families: Concepts and Methods." In Adult lntergenerational Relations, edited by Bengston, V. L., Schie, K. W., and L. M. Burton. New York: Springer.
Bequest Motives and Models of Inheritance: A Survey of the Literature In Is Inheritance Legitimate: Ethical Aspects of Wealth Transfers
- Masson
- Andre
Masson, Andre. 1997. "Bequest Motives and Models of Inheritance: A Survey of the Literature." In Is Inheritance Legitimate: Ethical Aspects of Wealth Transfers, edited by Erreygers, Guido, and Toon Vandevelde. New York: Springer Verlag.
Black Picket FencesPoverty in the Family: Exploring the Kin Networks of the Black and White Middle ClassEssays on lnterhousehold Transfers and the Family
- Washington Pattillo-Mccoy
- Mary Pattillo-Mccoy
- Mary
- Heflin
- Colleen
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Family Matters: Kin Networks and Asset Accumulation Paper presented at the Inclusion in Asset Building Confer-ence at the Center for Social Development at Washington UniversityPortfolio Choices of Parents and Their Children as Young Adults: Asset Accumulation by African-American Families
- Chiteji
- Darrick Hamilton Ngina
- Frank Ngina
- Stafford
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Poverty in the Family: Exploring the Kin Networks of the Black and White Middle Class
- Mary Pattillo-Mccoy
- Colleen Heflin
Pattillo-McCoy, Mary and Heflin, Colleen. 1999. "Poverty in the Family: Exploring
the Kin Networks of the Black and White Middle Class." Paper Presented at the
American Sociological Association Meetings.
Family Matters: Kin Networks and Asset Accumulation.” Paper presented at the Inclusion in Asset Building Conference at the Center for Social Development
- Ngina Chiteji
- Darrick Hamilton
Wealth and Racial Stratification.” InAmerica Becoming: Racial Trends and Their Consequences
- Melvin Oliver
Commentary: Intergenerational Support within African-American Families: Concepts and Methods
- Linda Chatters
- Rukmalie Jayakody
- V L Bengston
- K W Schie
- L M Burton
Chatters, Linda, and Jayakody, Rukmalie. 1996. "Commentary: Intergenerational
Support within African-American Families: Concepts and Methods." In Adult
Intergenerational Relations, edited by Bengston, V. L., Schie, K. W., and L. M.
Burton. New York: Springer.
Paper presented at the Inclusion in Asset Building Conference at the
- Ngina Chiteji
- Darrick Hamilton
Chiteji, Ngina, and Darrick Hamilton. 2000. "Family Matters: Kin Networks and
Asset Accumulation." Paper presented at the Inclusion in Asset Building Conference at the Center for Social Development at Washington University, St. Louis,
MO, September.
Poverty in the Family: Exploring the Kin Networks of the Black and White Middle Class
- Heflincolleen Pattillo-Mccoymary