However, demographic composition only partly explains this gap. Another is that differences in education accrue to differences in wealth. For example, one possible explanation is that non-Latino households are older and have more labor market experience, and hence are able to accumulate more wealth. For policy-makers who acknowledge the importance of wealth accumulation, the immediate question to ask is “what factors in the labor market drive the gap?” Once they’ve been determined, the next step has to be to find policies that would allow Latino households to accrue more wealth.ĭemographic differences partly explain this gap. Wealth in housing explains almost half of the gap, business ownership results in one-third of the gap, and stocks generate one-sixth of the gap. We can decompose this gap into housing, business ownership, and stock accumulation. The median wealth for a White non-Hispanic household is $285,000, while the median wealth for a Latino household is $61,600. On average, the median wealth of non-Latino households is four times larger than that of Latinos. These estimates show persistent wealth gaps between White non-Latino households and Latino households. This week the Federal Reserve released their estimates of wealth held by American households. Lozano | Inland Empire Economic Partnership
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |