Middle-Class Black Kids More Likely Than Whites To Lose Economic Ground As Adults
When it comes to financial stability, black Americans are often in much more precarious financial situations than white Americans.
Their unemployment rate is higher, and so is the level of poverty within the black community. In 2013, the poverty rate among white Americans was 9.6 percent, among black Americans it was 27.2 percent. And the gap between the wealth of white families and black families has widened to its highest levels since 1989, according to a 2014 study by Pew Research Center.
From The Atlantic. Story by Gillian B. White.
The facts of this rift aren’t new, or all that surprising. But perhaps what’s most unsettling about the current economic climate in black America is that when black families attain middle-class status, the likelihood that their children will remain there, or do better, isn’t high.
“Even black Americans who make it to the middle class are likely to see their kids fall down the ladder,” writes Richard Reeves, a senior fellow at the Brookings Institution. In a recent blog post Reeves says that seven out of 10 black children who are born to families with income that falls in the middle quintile of the income spectrum will find themselves with income that’s one to two quintiles below their parents’ during their own adulthood.
The greater probability of slipping back applies to blacks across income groups.
The explanations for this phenomenon are varied, but largely hinge on many of the criticisms that already exist in regard to socioeconomics and race in the U.S. Economists cite lower educational attainment, higher rates of single-parent households, and geographic segregation as potential explanations for these trends. The latter determines not only what neighborhoods people live in, but often what types of schools children attend, which could play a role in hindering their educational and professional attainment later on. According to Reeves, “In terms of opportunity, there are still two Americas, divided by race.”
Still, most economists lack a clear, definitive explanation for why, after reaching the middle class, many black American families quickly lose that status as their children fall behind.
Read more at The Atlantic.
Sign up for the Moguldom newsletter — business news you need to know about economic empowerment for the digital age, delivered to your inbox.