Wealth Inequality and the Racial Wealth Gap
Open accessAbstract
In the United States, the average Black and Hispanic or Latino households earn about half as much as the average White household and own only about 15 to 20 percent as much net wealth. As we see in Figure 1 below, this wealth gap has widened notably over the past few decades.
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The average Black or Latine household earns around half as much as the average white household.
“While the average Black or Latine household earns around half as much as the average white household”
From Wealth, Race, and Under-Addressed Financial Need in Federal Student Aid Policy (2025) · cites this paper as Aladangady & Forde, 2021
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“While the average Black or Latine household earns around half as much as the average white household, Black households own only about 15%, and Latine households around 20%, as much wealth as white families (Aladangady & Forde, 2021).”
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- Authors
- Aladangady, A., & Forde, A.
- Affiliations
- Federal Reserve (US)
- University of Chicago (US)
- ORCID
- Aladangady, Aditya
- Venue
- FEDS Notes
- Published
- 2021-10
- Volume
- 2021.0
- Issue
- 2861
- ISSN
- 2380-7172 (ISSN-L)
- OpenAlex
- W3211249141
- Cited by
- 70
- References
- 18
- Citations by year
- 2026: 7 · 2025: 21 · 2024: 20 · 2023: 16 · 2022: 5 · 2020: 1
- FWCI
- 14.20
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- FEDS Notes (publishedVersion, public-domain)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
- Social Sciences › Business, Management and Accounting › Accounting › Financial Literacy, Pension, Retirement Analysis
- Social Sciences › Sociology and Political Science › Intergenerational and Educational Inequality Studies
- Keywords
- wealth inequality, racial wealth gap, Black households, Latino families, household net wealth, income inequality
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