Racial inequality in the United States
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Overview

In the United States, racial inequality refers to the social inequality and advantages and disparities that affect different races. These can also be seen as a result of historic oppression, inequality of inheritance, or
racism Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one Race (human categorization), race or ethnicity over another. It may also me ...
and
prejudice Prejudice can be an affect (psychology), affective feeling towards a person based on their perceived In-group and out-group, social group membership. The word is often used to refer to a preconceived (usually unfavourable) evaluation or classifi ...
, de jure and de facto segregation, specifically against racial
minority group The term "minority group" has different meanings, depending on the context. According to common usage, it can be defined simply as a group in society with the least number of individuals, or less than half of a population. Usually a minority g ...
s. A 2021 survey of 1,422 members of the
American Economic Association The American Economic Association (AEA) is a learned society in the field of economics, with approximately 23,000 members. It publishes several peer-reviewed journals, including the Journal of Economic Literature, American Economic Review, an ...
found that 78 percent of professional economists generally agreed with the statement: "Differences in economic outcomes between whites and blacks in the US are in large part due to the persistence of discriminatory norms and institutions." There are vast differences in wealth across racial groups in the United States. The
wealth gap The distribution of wealth is a comparison of the wealth of various members or groups in a society. It shows one aspect of economic inequality or heterogeneity in economics, economic heterogeneity. The distribution of wealth differs from the i ...
between Caucasian and African American families substantially increased from $85,000 in 1984 to $236,500 in 2009. According to survey data presented by the ACLU, the wealth gap as of 2018 stands at $33,000. While the average income for a white family of three is roughly $84,600, a Black family of the same size would only earn $51,600. Many causes relate to racial inequality such as: Years of home ownership, household income, unemployment, education, lack of upward social mobility, and inheritance/generational wealth. In 1863, two years prior to emancipation, Black people owned 0.5 percent of the national wealth, while in 2019 it is just over 1.5 percent. Under slavery, African Americans were treated as property. After the American Civil War, Black sharecroppers became trapped in debt. African Americans were rarely able to homestead. The Freedman's Savings Bank failed, losing many Black assets. Exclusions from
Social Security Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance ...
disproportionately affected African Americans. Savings were spent for
retirement Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their j ...
instead of handed down as
inheritance Inheritance is the practice of receiving private property, titles, debts, entitlements, privileges, rights, and obligations upon the death of an individual. The rules of inheritance differ among societies and have changed over time. Offi ...
. African Americans are less likely to receive inheritance and more likely to aid poor family members. The
Federal Housing Administration The Federal Housing Administration (FHA), also known as the Office of Housing within the Department of Housing and Urban Development (HUD), is a Independent agencies of the United States government, United States government agency founded by Pr ...
and Veteran's Administration shut out African Americans by giving loans to
suburb A suburb (more broadly suburban area) is an area within a metropolitan area. They are oftentimes where most of a metropolitan areas jobs are located with some being predominantly residential. They can either be denser or less densely populated ...
s instead of central cities.
Housing segregation In the United States, housing segregation is the practice of denying African Americans and other minority groups equal access to housing through the process of misinformation, denial of realty and financing services, and racial steering. Hous ...
caused unequal living standards and poverty.
Public education A state school, public school, or government school is a primary school, primary or secondary school that educates all students without charge. They are funded in whole or in part by taxation and operated by the government of the state. State-f ...
greatly relies on local
property tax A property tax (whose rate is expressed as a percentage or per mille, also called ''millage'') is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or Wealth t ...
es, with racial inequality between White affluent suburbs and poor minorities in inner-cities. Criminal records lead to employment and income struggles. Inability to make
bail Bail is a set of pre-trial restrictions that are imposed on a suspect to ensure that they will not hamper the judicial process. Court bail may be offered to secure the conditional release of a defendant with the promise to appear in court when ...
and quality
counsel A counsel or a counsellor at law is a person who gives advice and deals with various issues, particularly in legal matters. It is a title often used interchangeably with the title of ''lawyer''. The word ''counsel'' can also mean advice given ...
are factors.
Racial segregation Racial segregation is the separation of people into race (human classification), racial or other Ethnicity, ethnic groups in daily life. Segregation can involve the spatial separation of the races, and mandatory use of different institutions, ...
and
racial profiling Racial profiling or ethnic profiling is the offender profiling, selective enforcement or selective prosecution based on race or ethnicity, rather than individual suspicion or evidence. This practice involves discrimination against minority pop ...
lead to differences between races. After World War I, white families found themselves displaced in an economy which made housing a luxury good. After the Great Depression, this disparity was exacerbated even more. Because of this, New Deal programs were created and managed by the Public Works Administration (PWA) in 1933 to aid in neighborhood composition. The way of doing this would be seen in segregated housing, even in already integrated communities. In 1937, the PWA was replaced with the U.S. Housing Authority (USHA). While they adopted many of the PWA’s policies, they focused particularly not on the location of public housing but on the racialization components. At this time, public housing was only made available to white individuals. Therefore, African Americans and all BIPOC individuals were forced into racial silos. The housing that was available to all minority groups was scarce and therefore significantly more expensive. “Rent to buy” sellers would allow African Americans the opportunity to build wealth through homeownership, but the home’s equity would not be attainable until the home was fully paid off. High density areas of BIPOC folks became the standard since most housing was used for multi-family homes. Oftentimes these homes would simply be built-in extensions of single-family homes because a lack of housing did not allow for African Americans to fit in anywhere else in the economic sector. One low interest rate programs and subsidized housing for the white suburbanization of America became standardized, BIPOC folks would be allowed to utilize public housing. However, this led to a new stigma in which public housing became “The projects.” Those who lived in public housing were now seen as criminals, dirty, lazy, and the opposite of disciplined hard working individuals. Even today this stigma stands in all branches of welfare an individual belonging to a minority community may utilize.


Definitions

In social science, racial inequality is typically defined as "imbalances in the distribution of power, economic resources, and opportunities." Racial inequalities have manifested in American society in ways ranging from racial disparities in wealth, poverty rates, bankruptcy, housing patterns, educational opportunities, unemployment rates, and incarceration rates. Current racial inequalities in the U.S. have their roots in over 300 years of cultural, economic, physical, legal, and political discrimination based on race. Leland T. Saito, Associate Professor of Sociology and American Studies & Ethnicity at the
University of Southern California The University of Southern California (USC, SC, or Southern Cal) is a Private university, private research university in Los Angeles, California, United States. Founded in 1880 by Robert M. Widney, it is the oldest private research university in ...
, writes, "Political rights have been circumscribed by race, class and gender since the founding of the United States, when the right to vote was restricted to White men of property. Throughout the history of the United States race has been used by Whites for legitimizing and creating difference and social, economic and political exclusion." Additionally, the United States Department of Treasury describes the definition of wealth as, "Wealth is defined as the total financial value of what an individual or household owns (assets) minus all debts (liabilities)"


History

Before the 1808 abolition of the transatlantic slave trade, Africans would be captured and brought into the United States as enslaved people, depriving them of all property, and in some cases family. In order to prevent rebellion or escape, the
slave codes The slave codes were laws relating to slavery and enslaved people, specifically regarding the Atlantic slave trade and chattel slavery in the Americas. Most slave codes were concerned with the rights and duties of free people in regards to ensla ...
in some states banned education of slaves, especially teaching a slave to read or write. Redistribution of land from white owners to the people formerly forced to work it was attempted under the
forty acres and a mule Forty acres and a mule refers to a key part of Special Field Orders, No. 15 (series 1865), a wartime order proclaimed by Union general William Tecumseh Sherman on January 16, 1865, during the American Civil War, to allot land to some freed famil ...
policy of Union General
William Tecumseh Sherman William Tecumseh Sherman ( ; February 8, 1820February 14, 1891) was an American soldier, businessman, educator, and author. He served as a General officer, general in the Union Army during the American Civil War (1861–1865), earning recognit ...
. This was reversed by President
Andrew Johnson Andrew Johnson (December 29, 1808July 31, 1875) was the 17th president of the United States, serving from 1865 to 1869. The 16th vice president, he assumed the presidency following the assassination of Abraham Lincoln. Johnson was a South ...
, a Southern Democrat who also opposed political rights for African Americans and protections against white violence in the South. Slavery continued in the border states until ratification of the
Thirteenth Amendment to the United States Constitution The Thirteenth Amendment (Amendment XIII) to the United States Constitution abolished Slavery in the United States, slavery and involuntary servitude, except Penal labor in the United States, as punishment for a crime. The amendment was passed ...
in December 1865. The
Freedmen's Bureau The Bureau of Refugees, Freedmen, and Abandoned Lands, usually referred to as simply the Freedmen's Bureau, was a U.S. government agency of early post American Civil War Reconstruction, assisting freedmen (i.e., former enslaved people) in the ...
was created as part of the War Department by President
Abraham Lincoln Abraham Lincoln (February 12, 1809 – April 15, 1865) was the 16th president of the United States, serving from 1861 until Assassination of Abraham Lincoln, his assassination in 1865. He led the United States through the American Civil War ...
to provide shelter and supplies to freed slaves. It was supported by the Republican Congress over the veto of Andrew Johnson, but was soon de-funded and abandoned by a Democrat-controlled Congress in 1872. While free African Americans owned around $50 million by 1860, farm tenancy and
sharecropping Sharecropping is a legal arrangement in which a landowner allows a tenant (sharecropper) to use the land in return for a share of the crops produced on that land. Sharecropping is not to be conflated with tenant farming, providing the tenant a ...
replaced slavery after the
American Civil War The American Civil War (April 12, 1861May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States between the Union (American Civil War), Union ("the North") and the Confederate States of A ...
because newly freed African American farmers did not own land or supplies and had to depend on the White Americans who rented the land and supplies out to them. At the same time, southern Blacks were trapped in debt and denied banking services while White citizens were given low-interest loans to set up farms in the Midwest and Western United States. White homesteaders were able to go West and obtain unclaimed land through government grants, while the land grants and rights of African Americans were rarely enforced. After the Civil War the Freedman's Bank helped to foster wealth accumulation for African Americans. However, it failed in 1874, partially because of suspicious high-risk loans to White banks and the
Panic of 1873 The Panic of 1873 was a financial crisis that triggered an economic depression in Europe and North America that lasted from 1873 to 1877 or 1879 in France and in Britain. In Britain, the Panic started two decades of stagnation known as the "L ...
. This lowered the support African Americans had to open businesses and acquire wealth. In addition, after the bank failed, taking the assets of many African Americans with it, many African Americans did not trust banks. There was also the threat of lynching to any African American who achieved success. In addition, when
Social Security Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance ...
was first created during the
Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
, it exempted agricultural and domestic workers, which disproportionately affected African Americans and Hispanics. Consequently, the savings of retired or disabled African Americans was spent during old age instead of handed down and households had to support poor elderly family members. The Homeowner's Loan Corporation that helped homeowners during the Great Depression gave African American neighborhoods the lowest rating, ensuring that they defaulted at greater rates than White Americans. The Federal Housing Authority (FHA) and Veteran's Administration (VA) shut out African Americans by giving loans to suburbs instead of central cities after they were first founded. The growing
Blaxit Blaxit is a social movement that promotes the repatriation of black people from the United States and Europe to Africa. The term now includes all people of African heritage who desire to move to Africa for many reasons, including new economic gro ...
movement is now seeing large amounts of African Americans moving to Africa to benefit from the new growth opportunities.


Racial wealth gap

A study by the
Brandeis University Brandeis University () is a Private university, private research university in Waltham, Massachusetts, United States. It is located within the Greater Boston area. Founded in 1948 as a nonsectarian, non-sectarian, coeducational university, Bra ...
Institute on Assets and Social Policy which followed the same sets of families for 25 years found that there are vast differences in wealth across racial groups in the United States. The wealth gap between Caucasian and African-American families studied nearly tripled, from $85,000 in 1984 to $236,500 in 2009. The study concluded that factors contributing to the inequality included years of home ownership (27%), household income (20%), education (5%), and familial financial support and/or inheritance (5%). In an analysis of the American Opportunity Accounts Act, a bill to introduce Baby Bonds, Morningstar reported that by 2019 white families had more than seven times the wealth of the average Black family, according to the
Survey of Consumer Finances The ''Survey of Consumer Finances'' (SCF) is a triennial statistical survey of the balance sheet, pension, income and other demographic characteristics of families in the United States; the survey also gathers information on the use of financial ins ...
.
Wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an ...
can be defined as "the total value of things families own minus their debts." In contrast, income can be defined as, "earnings from work, interest and dividends, pensions, and transfer payments." Wealth is an important factor in determining the quality of both individual and family life chances because it can be used as a tool to secure a desired quality of life or class status and enables individuals who possess it to pass their class status to their children. Family inheritance, which is passed down from generation to generation, helps with wealth accumulation. Wealth can also serve as a safety net against fluctuations in income and poverty. There is a large gap between the wealth of minority households and white households within the United States. The Pew Research Center's analysis of 2009 government data says the median wealth of white households is 20 times that of Black households and 18 times that of Hispanic households. In 2009 the typical Black household had $5,677 in wealth, the typical Hispanic had $6,325, and the typical white household had $113,149. Furthermore, 35% of African American and 31% of Hispanic households had zero or negative net worth in 2009 compared to 15% of white households. While in 2005 median Asian household wealth was greater than white households at $168,103, by 2009 that changed when their net worth fell 54% to $78,066, partially due to the arrival of new Asian immigrants since 2004; not including newly arrived immigrants, Asian net wealth only dropped 31%. According to the Federal Reserve Survey of Consumer Finances, of the 14 million Black households, only 5% have more than $350,000 in net worth while nearly 30% of white families have more than this amount. Less than 1% of Black families have over a million in net assets. while nearly 10% of white households, totaling over 8 million families have more than 1.3 million in net worth. According to the Federal Reserve of Cleveland the wealth gap between white and Black Americans has remained roughly the same since 1962, when the average white family had seven times the wealth of the average Black family. Lusardi states that African Americans and Hispanics are more likely to face means-tested programs that discourage asset possession due to higher
poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...
rates. One-fourth of African Americans and Hispanics approach retirement with less than $1,000 net worth (without considering pensions and Social Security). Lower financial literacy is correlated with poor savings and adjustment behavior. Education is a strong predictor for wealth. One-fourth of African Americans and Hispanics that have less than a high school education have no wealth, but even with increased education, large differences in wealth remain. Conley believes that the cause of Black-White
wealth inequality The distribution of wealth is a comparison of the wealth of various members or groups in a society. It shows one aspect of economic inequality or economic heterogeneity. The distribution of wealth differs from the income distribution in that ...
may be related to economic circumstances and poverty because the economic disadvantages of African Americans can be effective in harming efforts to accumulate wealth. However, there is a five times greater chance of downward mobility from the top quartile to the bottom quartile for African Americans than there is for white Americans; correspondingly, African Americans rise to the top quartile from the bottom quartile at half the rate of white Americans. Bowles and Gintis conclude from this information that successful African Americans do not transfer the factors for their success as effectively as white Americans do. Other factors to consider in the recent widening of the minority wealth gap are the
subprime mortgage crisis The American subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010, contributing to the 2008 financial crisis. It led to a severe economic recession, with millions becoming unemployed and many busines ...
and
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
. The Pew Research Center found that plummeting house values were the main cause of the wealth change from 2005 to 2009. Hispanics were hit the hardest by the housing market meltdown possibly because a disproportionate share of Hispanics live in California, Florida, Nevada, and Arizona, which are among the states with the steepest declines in housing values. From 2005 to 2009 Hispanic homeowners' home equity declined by Half, from $99,983 to $49,145, with the homeownership rate decreasing by 4% to 47%. A 2015
Measure of America Measure may refer to: * Measurement, the assignment of a number to a characteristic of an object or event Law * Ballot measure, proposed legislation in the United States * Church of England measure, legislation of the Church of England * Me ...
br>study
commissioned by the
ACLU The American Civil Liberties Union (ACLU) is an American nonprofit civil rights organization founded in 1920. ACLU affiliates are active in all 50 states, Washington, D.C., and Puerto Rico. The budget of the ACLU in 2024 was $383 million. ...
on the long-term consequences of discriminatory lending practices found that the
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
will likely widen the Black-white wealth gap for the next generation. The racial wealth gap essentially is composed of a private wealth management industry maintaining Whiteness to act as a barrier to prevent those of color from equal financial development. This disparity has been debated, but never disputed due to its "very real" implications it has on African Americans. Data has shown that "among racial and ethnic groups, African Americans had the highest poverty rate at 27.4%”.


Inheritance and parental financial assistance

Bowman states that "in the United States, the most significant aspect of multigenerational wealth distribution comes in the forms of gifts and inheritances." However, the multigenerational absence of wealth and asset attainment for African Americans makes it almost impossible for them to make significant contributions of wealth to the next generation. Data shows that financial inheritances could account for 10 to 20 percent of the difference between African American and White American household wealth. Using the Health and Retirement Study (HRS) of 1992 Avery and Rendall estimated that only around one-tenth of African Americans reported receiving inheritances or substantial inter vivo transfers ($5,000 or more) compared to one-third of white Americans. In addition, the 1989 Survey of Consumer Finances (SCF) reported that the mean and median values of those money transfers were significantly higher for white American households: the mean was $148,578 households compared to $85,598 for African American households and the median was $58,839 to $42,478. The large differences in wealth in the parent-generations were a dominant factor in prediction the differences between African American and white American prospective inheritances. Avery and Rendall used 1989 SCF data to discover that the mean value in 2002 of white Americans' inheritances was 5.46 times that of African Americans', compared to 3.65 that of current wealth. White Americans received a mean of $28,177 that accounted for 20.7% of their mean wealth while African Americans received a mean of $5,165 that accounted for 13.9% of their mean current wealth. Non-inherited wealth was more equally distributed than inherited wealth. Avery and Rendall found that family attributes favored white Americans when it came to factor influencing the amount of inheritances. African Americans were 7.3% less likely to have live parents, 24.5% more likely to have three or more siblings, and 30.6% less likely to be married or cohabiting (meaning two people could gain inheritances to contribute to the household) Keister discovered that large family size has a negative effect on wealth accumulation. These negative effects are worse for the poor and African Americans and Hispanics are more likely to be poor and have large families. More children also decrease the amount of gifts parents can give and the inheritance they leave behind for the children. Angel's research into inheritance showed that older Mexican American parents may give less financial assistance to their children than non-Hispanic White Americans because of their relatively high fertility rate so children have to compete for the available money. There are studies that indicate that elderly Hispanic parents of all backgrounds live with their adult children due to poverty and would choose to do otherwise, even if they had the resources to do so. African American and Latino families are less likely to financially aid adult children than non-Hispanic white families.


Income effects

The racial wealth gap is visible in terms of dollar for dollar wage and wealth comparisons. For example, middle-class Blacks earn seventy cents for every dollar earned by similar middle-class whites. Race can be seen as the "strongest predictor" of one's wealth. Krivo and Kaufman found that information supporting the fact that increases in income does not affect wealth as much for minorities as it does for white Americans. For example, a $10,000 increase in income for white Americans increases their home equity $17,770 while the same increase only increase the home equities for Asians by $9,500, Hispanics by $15,150, and African Americans by $15,900.


Pandemic Income Effects

According to a report from the New York Federal Reserve Bank, presented by AP News, “The real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively, from the first quarter of 2019 through the second quarter of 2023.” Remarkable government aid was seen through this period which aided all American citizens equally. Record rates of low unemployment were seen even in BIPOC communities. Stimulus checks proved extremely helpful and as a viable solution in closing the gap during the COVID-19 induced recession. However, financial asset prices quickly increased and widened the gap between white individuals and marginalized groups once again. Additionally, “During the pandemic, the real value of Black-held financial assets dropped in 2022 to below its 2019 level and continued to decline steadily, while the real value of Hispanic-held financial assets dipped below its 2019 level in 2022 and stagnated.” Job loss in Black-owned business sectors continued to enlarge the gap as their economic livelihood would not survive the pandemic.


Financial decisions


Investments

Conley states that differences between African American and white American wealth begin because people with higher asset levels can take advantage of riskier investment instruments with higher rates of returns. Unstable income flows may lead to "cashing in" of assets or accumulation of debt over time, even if the time-averaged streams of income and savings are the same. African Americans may be less likely to invest in the stock market because they have a smaller parental head-start and safety net. Chong, Phillips and Phillips state that African Americans, Hispanics, and Asians invest less heavily in stocks than white Americans. Hispanics and in some ways African Americans accumulate wealth slower than white Americans because of preference for near-term saving, favoring liquidity and low investment risk at the expense of higher yielding assets. These preferences may be due to low financial literacy leading to a lack of demand for investment services. According to Lusardi, even though the stock market increased in value in the 1990s, only 6-7% of African Americans and Hispanics held stocks, so they did not benefit as much from the value increase.


Use of financial services

The Federal Deposit Insurance Corporation in 2009 found that 7.7% of United States households are
unbanked The unbanked are adults who do not have their own bank accounts. Along with the underbanked, they may rely on alternative financial services for their financial needs, where these are available. Causes Some reasons a person might not have a ban ...
. Minorities are more likely than white Americans to not have a banking account. 3.5% of Asians, 3.3% of white Americans, 21.7% of African Americans and 19.3% of Hispanics and 15.6% of remaining racial/ethnic categories do not have banking accounts. Lusardi's research revealed that education increases one's chances of having a banking account. A full high school education increases the chance of having a checking account by 15% compared to only an elementary education; having a parent with a high school education rather than only an elementary education increases one's chances of having a checking account by 2.8%. This difference in education level may explain the large proportion of "unbanked" Hispanics. The 2002 National Longitudinal Survey found that while only 3% of white Americans and 4% of African Americans had only an elementary education, close to 20% of Hispanics did and 43% of Hispanics had less than a high school education Ibarra and Rodriguez believe that another factor that influences the Hispanic use of banking accounts is credit. Latinos are also more likely than white Americans or African Americans to have no or a thin credit history: 22% of Latinos have no
credit score A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bu ...
in comparison to 4% of white Americans and 3% of African Americans. Not taking other variables into account, Chong, Phillips, and Phillips survey of zip codes found that minority neighborhoods don't have the same access to financial planning services as white neighborhoods. There is also client segregation by investable assets. More than 80% of financial advisors prefer that clients have at least $100,000 in investable assets and more than 50% have a minimum asset requirement of $500,000 or above. Because of this, financial planning is possibly beyond the reach of those with low income, which comprises a large portion of African-Americans and Hispanics. Fear of discrimination is another possible factor. Minorities may be distrustful of banks and lack of trust was commonly reported as why minorities, people with low education, and the poor chose not to have banking accounts. Evidence suggests that women of color are disproportionately likely to plan on using informal borrowing as their sole strategy for coping with an emergency expense, potentially due to lack of access to formal banking services.


Aid to family members

Though African Americans who attend college get a similar boost in income to white peers, they tend not to have a similar increase in wealth, largely because they spend more money helping poor family members, including older relatives who in white families are instead more likely to help younger kin.


Health care

Black Americans face consistently worse health outcomes than white, Asian, and Hispanic Americans. Black women are 2½ times more likely to die of maternal causes than white women and this rate increases to 3 times when compared to Hispanic Americans. The infant mortality rate for Black Americans is 11 per 1,000 births which is higher than the US average of 5.7. There exists gaps in life expectancy between races with Black and Native Americans having the lowest life expectancies. The gap between Black and white Americans on average is four years; however, there is great variation between states and even on smaller levels. For example in Wisconsin this gap is six years, and in Washington, D.C., this gap is more than ten years. African American women have the highest rate of obesity or being overweight in the US and non-Hispanic Blacks are 1.3 times more likely to be obese than non-Hispanic Whites.


Poverty

There are large differences in poverty rates across racial groups. In 2009, the poverty rate across the nation was 9.9%. This data illustrates that Hispanics and Blacks experience disproportionately high percentages of poverty in comparison to non-Hispanics whites and Asians. In discussing poverty, it is important to distinguish between episodic poverty and chronic poverty.


Episodic poverty

The U.S. Census Bureau defines episodic poverty as living in poverty for less than 36 consecutive months. From the period between 2004 and 2006 the episodic poverty rate was 22.6% for non-Hispanic whites, 44.5% for Blacks, and 45.8% for Hispanics. Blacks and Hispanics experience rates of episodic poverty that are nearly double the rates of non-Hispanic whites.


Chronic poverty

The U.S. Census Bureau defines chronic poverty as living in poverty for 36 or more consecutive months. From the period between 2004 and 2006 the chronic poverty rate was 1.4% for non-Hispanic whites, 4.5% for Hispanics, and 8.4% for Blacks. Hispanics and Blacks experience much higher rates of chronic poverty when compared to non-Hispanic whites.


Length of poverty spell

The U.S. Census Bureau defines length of poverty spell as the number of months spent in poverty. The median length of poverty spells was 4 months for non-Hispanic whites, 5.9 months for Blacks, and 6.2 months for Hispanics. The length of time spent in poverty varies by race. Non-Hispanic whites experience the shortest length of poverty spells when compared to Blacks and Hispanics.


Housing


Housing segregation

Housing segregation in the United States is the practice of denying
African American African Americans, also known as Black Americans and formerly also called Afro-Americans, are an Race and ethnicity in the United States, American racial and ethnic group that consists of Americans who have total or partial ancestry from an ...
or other minority groups equal access to housing through the process of misinformation, denial of realty and financing services, and racial steering. Housing policy in the United States has influenced housing segregation trends throughout history. Key legislation include the National Housing Act of 1934, the GI Bill, and the Fair Housing Act. Factors such as socioeconomic status, spatial assimilation, and immigration contribute to perpetuating housing segregation. The effects of housing segregation include relocation, unequal living standards, and poverty.The Continuing Causes of Segregation
.
Massey, Douglas Douglas Steven Massey (born October 5, 1952) is an American Sociology, sociologist. Massey is currently a professor of sociology at the Princeton School of Public and International Affairs at Princeton University and is an adjunct professor of s ...
, and Nancy Denton.
American Apartheid: Segregation and the Making of the Underclass
'. Cambridge: Harvard University Press, 1993, .
However, there have been initiatives to combat housing segregation, such as the Section 8 housing program. Racial
residential segregation Residential segregation is a concept in urban sociology which refers to the voluntary or forced spatial separation of different socio-cultural, ethnic, or racial groups within residential areas. It is often associated with immigration, wealth ineq ...
doubled from 1880 to 1940. Southern urban areas were the most segregated. Segregation was highly correlated with lynchings of African-Americans. Segregation adversely affected both black and white homeownership rates, as well as caused higher crime rates. Areas with housing segregation had worse health outcomes for both whites and Blacks. Residential segregation accounts for a substantial share of the Black-white gap in
birth weight Birth weight is the body weight of a baby at their birth. The average birth weight in babies of European and African descent is , with the normative range between . 15% of babies born in 2012 had a low birth weight and 14.7% in 2020. It is pro ...
. Segregation reduced upward economic mobility. White communities are more likely to have strict land use regulations (and whites are more likely to support those regulations). Strict land use regulations are an important driver of housing segregation along racial lines in the United States.


Eviction


Employment

In 2016, the unemployment rate was 3.8% for Asians, 4.6% for non-Hispanic whites, 6.1% for Hispanics, and 9.0% for Blacks, all over the age of 16. In terms of unemployment, it can be seen that there are two-tiers: relatively low unemployment for Asians and whites, relatively high unemployment for Hispanics and Blacks. According to the New York Times, "There are several explanations for the racial disparity. White workers might have had more wealth or savings to weather unemployment than their Black counterparts did, but at a cost to their upward mobility. They might also have been less willing to find another job."


Potential explanations

Several theories have been offered to explain the large racial gap in unemployment rates:


Segregation and job decentralization

This theory argues that the effects of racial segregation pushed Blacks and Hispanics into the central city during a time period in which jobs and opportunities moved to the suburbs. This led to geographic separation between minorities and job opportunities which was compounded by struggles to commute to jobs in the suburbs due to lack of means of transportation. This ultimately led to high unemployment rates among minorities.


White gains

This theory argues that the reason minority disadvantage exists is because the majority group is able to benefit from it. For example, in terms of the labor force, each job not taken by a Black person could be job that gets occupied by a white person. This theory is based on the view that the white population has the most to gain from the discrimination of minority groups. In areas where there are large minority groups, this view predicts high levels of discrimination to occur for the reason that white populations stand to gain the most in those situations.


Job skill differentials

This theory argues that the unemployment disparity can be attributed to lower rates of academic success among minority groups (especially Black Americans) leading to a lack of skills necessary for entering the modern work force. The author remains unclear why Black Americans have low academic success.


Other explanations

It is politically incorrect to assume that racial inequality is caused by differences in skills or preferences. The lack of open discussion leads to ethnic groups being treated equally. This means that diverse groups receive the same offers which have different advantages for different groups, which further increases inequality.


Employment discrimination

As of February 2025, the Citing Slavery Project of
Michigan State University Michigan State University (Michigan State or MSU) is a public university, public Land-grant university, land-grant research university in East Lansing, Michigan, United States. It was founded in 1855 as the Agricultural College of the State o ...
found more than 7,000 direct
case law Case law, also used interchangeably with common law, is a law that is based on precedents, that is the judicial decisions from previous cases, rather than law based on constitutions, statutes, or regulations. Case law uses the detailed facts of ...
citations of legal disputes over
slaves Slavery is the ownership of a person as property, especially in regards to their labour. Slavery typically involves compulsory work, with the slave's location of work and residence dictated by the party that holds them in bondage. Enslavemen ...
as
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, re ...
(including '' Prigg v. Pennsylvania'' in 274 cases) that remained widely cited by lawyers and judges in the United States as
precedent Precedent is a judicial decision that serves as an authority for courts when deciding subsequent identical or similar cases. Fundamental to common law legal systems, precedent operates under the principle of ''stare decisis'' ("to stand by thin ...
s, and have been identified by employment discrimination lawyers as being the reason why courts in the United States rarely find civil rights violations in employment and other contexts.


Education

In the United States, funding for public education relies greatly on local property taxes. Local property tax revenues may vary between different neighborhoods and school districts. This variance of property tax revenues amongst neighborhoods and school districts leads to inequality in education. This inequality manifests in the form of available school financial resources which provide educational opportunities, facilities, and programs to students. For every student enrolled, the average nonwhite school district receives $2,226 less than a white school district. Returning to the concept of residential segregation, it is known that affluence and poverty have become both highly segregated and concentrated in relation to race and location. Residential segregation and poverty concentration is most markedly seen in the comparison between urban and suburban populations in which suburbs consist of majority white populations and inner-cities consist of majority minority populations. According to Barnhouse-Walters (2001), the concentration of poor minority populations in inner-cities and the concentration of affluent white populations in the suburbs, "is the main mechanism by which racial inequality in educational resources is reproduced." According to Human Capital Theory, BIPOC individuals cannot experience upward social mobility due to their lack of investment in education. This stems from the belief that the United States works as a meritocratic society. However, when wealth is tied to education, accessibility to upward mobility is lost. It is extremely difficult to empirically measure human capital as it is a hypothetical predictor of an individual's predicted labor earnings. As a result, an intersectional oversight of education and crime can be stronger indicators of tangible obstacles which obstruct building wealth.


Crime rates and incarceration

In 2008, the prison population under federal and state correctional jurisdiction was over 1,610,446 prisoners. Of these prisoners, 20% were Hispanic (compared to 16.3% of the U.S. population that is Hispanic), 34% were White (compared to 63.7% of the U.S. population that is White), and 38% were Black (compared to 12.6% of the U.S. population that is Black). Additionally, Black males were imprisoned at a rate 6.5 times higher than that of their White male counterparts. According to a 2012 study by the U.S. Census Bureau, "over half the inmates incarcerated in our nation's jails is either Black or Hispanic." According to a report by the National Council of La Raza, research obstacles undermine the census of Latinos in prison, and "Latinos in the criminal justice system are seriously undercounted. The true extent of the overrepresentation of Latinos in the system probably is significantly greater than researchers have been able to document.


Consequences of a criminal record

The injustices of a criminal justice system disproportionately impact Black people; maintaining these racial disparities has a high cost for individuals, families, and communities. On an individual level, a criminal conviction may equate to loss of access to employment, housing, and public service opportunities. On the community level, the disproportionate incarceration of people from poorer communities depletes the economic resources of said community and curates cycles of poverty that becomes increasingly harder to get rid of. These communities also face increased criminal justice involvement in their communities, making criminal justice contact a norm in the lives of an immense number of Black Americans. After being released from prison, the consequences of having a criminal record are immense. Over 40 percent who are released will return to prison within the next few years. Those with criminal records who do not return to prison face significant struggles to find quality employment and income outcomes compared to those who do not have criminal records. Those racially disparate employment consequences can arise from other forms of carceral contact, too, and they can have spillover effects on local communities. At the county level, for example, jail rather than prison incarceration has been found to significantly diminish local labor markets in areas with relatively high proportions of Black residents.


Potential causes


Poverty

A potential cause of such disproportionately high incarceration rates for Black Americans is that Black Americans are disproportionately poor. Conviction is a crucial part of the process that leads to either guilt or innocence. There are two important factors that play a role in this part of the process: the ability to make bail and the ability to access high-quality legal counsel. Due to the fact that both of these important factors cost money, it is unlikely that poor Black Americans are able to afford them and benefit from them. Sentencing is another crucial part of the process that determines how long individuals will remain incarcerated. Several sociological studies have found that poor offenders receive longer sentences for violent crimes and crimes involving drug use, unemployed offenders are more likely to be incarcerated than their employed counterparts, and then even with similar crimes and criminal records minorities were imprisoned more often than whites.


Racial profiling

Racial profiling is defined as "any police-initiated action that relies on the race, ethnicity, or national origin, rather than the behavior of an individual or information that leads the police to a particular individual who has been identified as being, or having been, engaged in criminal activity." Another potential cause for the disproportionately high incarceration rates of Blacks and Hispanics is that racial profiling occurs at higher rates for Blacks and Hispanics. Eduardo Bonilla-Silva states that racial profiling can perhaps explain the over representation of Blacks and Hispanics in U.S. prisons. According to Michael L. Birzer, professor of criminal justice at
Wichita State University Wichita State University (WSU) is a public research university in Wichita, Kansas, United States. It is governed by the Kansas Board of Regents. The university offers more than 60 undergraduate degree programs in more than 200 areas of study in ...
and director of its School of Community Affairs, "racial minorities, particularly African Americans, have had a long and troubled history of disparate treatment by United States Criminal Justice Authorities." A report by the
National Registry of Exonerations The National Registry of Exonerations is a project of the University of Michigan Law School, Michigan State University College of Law and the University of California Irvine Newkirk Center for Science and Society. The Registry was co-founded in 2012 ...
found that
African Americans African Americans, also known as Black Americans and formerly also called Afro-Americans, are an American racial and ethnic group that consists of Americans who have total or partial ancestry from any of the Black racial groups of Africa ...
were seven times more likely to be falsely convicted compared to White Americans.


Racial segregation

"Racial residential segregation is a fundamental cause of racial disparities in health". Racial segregation can result in decreased opportunities for minority groups in income, education, etc. While there are laws against racial segregation, study conducted by D. R. Williams and C. Collins focuses primarily on the impacts of racial segregation, which leads to differences between races.


Police brutality

Significant racial discrepancies have been reported in the United States involving police brutality. Police brutality in the United States is defined as "the unwarranted or excessive and often illegal use of force against civilians by U.S. police officers." It can come in the form of murder, assault, mayhem, or torture, as well as less physical means of violence including general harassment, verbal abuse, and intimidation. it has been argued that the origins of racial inequality by way of police brutality in America date to colonial times when slavery was legal and widespread. Due to fear of slave revolts, White Americans began to organize groups of vigilantes who would use force to keep slaves from rebelling against their owners or escaping. During the civil rights era, the existence of the racial disparities surrounding police brutality became more discussed. During peaceful protests for civil rights, some police would use tactics such as police dogs or fire hoses to control the protesters. In 1991, video footage was released of cab driver
Rodney King Rodney Glen King (April 2, 1965June 17, 2012) was a Black American victim of police brutality. On March 3, 1991, he was severely beaten by Police officer, officers of the Los Angeles Police Department (LAPD) during his arrest after a high spe ...
being hit over 50 times by multiple police with their batons. The police were later acquitted for their actions which resulted in the
1992 Los Angeles riots The 1992 Los Angeles riots were a series of riots and civil disturbances that occurred in Los Angeles County, California, United States, during April and May 1992. Unrest began in South Los Angeles, South Central Los Angeles on April 29, after ...
. Allegations of police brutality continue to plague American police. An alleged example of police brutality includes
Philando Castile On July 6, 2016, Philando Castile, a 32-year-old African American man, was fatally shot during a traffic stop by police officer Jeronimo Yanez of the St. Anthony police department in the Minneapolis–Saint Paul metropolitan area. About 9 p.m. ...
, a 32-year-old Black male who was pulled over for a broken taillight. After being told by officer Yanez, to take out his license and insurance, Castile told the officer he had a firearm and that he was reaching into his pocket to get his wallet. Seconds later he was shot and killed by Yanez, who claimed he believed Castile was pulling his gun out. Yanez was charged with manslaughter and acquitted at trial. Black Americans are 2–3 times more likely to be killed in a police shooting than White Americans and are more likely to be unarmed during those fatal instances. A study done by Joshua Correll at the University of Chicago shows what is called "The police officers dilemma", by setting up a video game in which police are given scenarios involving both Black and White men holding either a gun or non-threatening objects such as cellphones. The study found that armed Black men were shot more frequently than armed White men and were also shot more quickly. The police would also sometimes mistakenly shoot the unarmed Black targets, while neglecting to shoot the armed White targets. Militarized police units are more often deployed in Black neighborhoods even after adjusting for crime rates. A 2020 study by Cody Ross ''et al.'' concluded that there was evidence of bias in police shootings of unarmed Blacks and that even when using crime as a benchmark "there is strong and statistically reliable evidence of anti-Black racial disparities in the killing of unarmed Americans by police". A study by Harvard economist Roland Fryer found that for officer-involved shootings there were no racial disparities "in either the raw data or when contextual factors are taken into account". According to data from the Chicago Police Department police used more force against Black people than any other race despite the fact that they were less likely to resist arrest than Whites. Around 20% of the population of
Minneapolis Minneapolis is a city in Hennepin County, Minnesota, United States, and its county seat. With a population of 429,954 as of the 2020 United States census, 2020 census, it is the state's List of cities in Minnesota, most populous city. Locat ...
is Black but they are subjected to nearly 60% of total police use of force.


Color-blind racism

It is hypothesized by some scholars, such as
Michelle Alexander Michelle Alexander (born October 7, 1967) is an American writer, attorney, and civil rights activist. She is best known for her 2010 book '' The New Jim Crow: Mass Incarceration in the Age of Colorblindness''. Since 2018, she has been an opinion ...
, that in the since the Civil Rights Era, the United States has now switched to a new form of
racism Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one Race (human categorization), race or ethnicity over another. It may also me ...
known as color-blind racism. Color-blind racism refers to "contemporary racial inequality as the outcome of nonracial dynamics." The types of practices that take place under color blind racism are "subtle, institutional, and apparently nonracial." Those practices are not racially overt in nature such as racism under slavery, segregation, and
Jim Crow laws The Jim Crow laws were U.S. state, state and local laws introduced in the Southern United States in the late 19th and early 20th centuries that enforced Racial segregation in the United States, racial segregation, "Jim Crow (character), Ji ...
. Instead, color-blind racism flourishes on the idea that race is no longer an issue in the country and that there are non-racial explanations for the state of inequality. Eduardo Bonilla-Silva writes that there are four frames of color-blind racism that support that view: # Abstract liberalism uses ideas associated with political
liberalism Liberalism is a Political philosophy, political and moral philosophy based on the Individual rights, rights of the individual, liberty, consent of the governed, political equality, the right to private property, and equality before the law. ...
. This frame is based in liberal ideas such as equal opportunity, individualism, and choice. It uses these ideas as a basis to explain inequality. # Naturalization explains racial inequality as a cause of natural occurrences. It claims that segregation is not the result of racial dynamics. Instead, it is the result of the naturally-occurring phenomena of individuals choosing likeness as their preference. # Cultural racism explains racial inequality through culture. Under this frame, racial inequalities are described as the result of stereotypical behavior of minorities. Stereotypical behavior includes qualities such as laziness and teenage pregnancy. # Minimization of racism attempts to minimize the factor of race as a major influence in affecting the life chances of minorities. It writes off instances and situations that could be perceived as discrimination to be hypersensitivity to the topic of race.


Natural disasters

When a disaster strikes—be it a hurricane, tornado, or fire—some people are inherently more prepared than others. "While all members of populations are affected by disasters, research findings show that racial and ethnic minorities are less likely to evacuate and more affected by disasters" than their Caucasian counterparts. "During
Hurricane Katrina Hurricane Katrina was a powerful, devastating and historic tropical cyclone that caused 1,392 fatalities and damages estimated at $125 billion in late August 2005, particularly in the city of New Orleans and its surrounding area. ...
, the large number of people seeking safety in designated shelters were disproportionately Black. In addition, the mortality rate for Blacks was 1.7 to 4 times higher than that of whites for all people ≥ 18." After Hurricane Katrina, many African Americans felt abandoned by the United States Government. 66% of African Americans "said that 'the government's response to
atrina ''Atrina'' is a cosmopolitan genus of bivalve molluscs belonging to the family Pinnidae. A typical species is ''Atrina fragilis, A. fragilis'', found in British waters. ''Atrina rigida, A. rigida'' (John Lightfoot FRS, Lightfoot, 1786) is found ...
would have been faster if most of the victims had been white. For a disproportionate share of the impoverished in New Orleans, many had, and continue to have, a difficult time preparing for storms. Factors such as, "cultural ignorance, ethnic insensitivity, racial isolation and racial bias in housing, information dissemination, and relief assistance" all greatly contribute to the disparities in disaster preparedness.


Credit scores


See also

* Civil rights movement *
Chinese Exclusion Act The Chinese Exclusion Act of 1882 was a United States Code, United States federal law signed by President Chester A. Arthur on May 6, 1882, prohibiting all immigration of Chinese laborers for 10 years. The law made exceptions for travelers an ...
*
Glass ceiling A glass ceiling is a metaphor usually applied to women, used to represent an invisible barrier that prevents a given demographic from rising beyond a certain level in a hierarchy.Federal Glass Ceiling Commission''Solid Investments: Making Ful ...
*
Gender inequality in the United States Gender inequality in the United States has been diminishing throughout its history and significant advancements towards equality have been made beginning mostly in the early 1900s. However, despite this progress, gender inequality in the United S ...
*
Immigration Act of 1924 The Immigration Act of 1924, or Johnson–Reed Act, including the Asian Exclusion Act and National Origins Act (), was a United States federal law that prevented immigration from Asia and set quotas on the number of immigrants from every count ...
*
Indian Appropriations Act The Indian Appropriations Act is the name of several acts passed by the United States Congress. A considerable number of acts were passed under the same name throughout the 19th and early 20th centuries, but the most notable landmark acts consi ...
* Inequality in Hollywood *
Japanese American internment During World War II, the United States forcibly relocated and incarcerated about 120,000 people of Japanese descent in ten concentration camps operated by the War Relocation Authority (WRA), mostly in the western interior of the country. Abou ...
* Mexican Repatriation * Native Americans and reservation inequality * ''
The New Jim Crow ''The New Jim Crow: Mass Incarceration in the Age of Colorblindness'' is a 2010 book by Michelle Alexander, a civil rights litigator and legal scholar. The book discusses race-related issues specific to African-American males and mass incarcerat ...
'' *
Operation Wetback Operation Wetback was an immigration law enforcement initiative created by Joseph May Swing, Joseph Swing, a retired United States Army lieutenant general (United States), lieutenant general and head of the United States Immigration and Naturaliza ...
*
Racial achievement gap in the United States The racial achievement gap in the United States refers to disparities in educational achievement between differing ethnic/racial groups. It manifests itself in a variety of ways: African-American and Hispanic students are more likely to earn l ...
*
Racial segregation in the United States Facilities and services such as housing, healthcare, education, employment, and transportation have been systematically separated in the United States based on racial categorizations. Notably, racial segregation in the United States was the leg ...
* Racial wage gap in the United States *
Racism in the United States Racism has been reflected in discriminatory laws, practices, and actions (including violence) against Race (human categorization), racial or ethnic groups throughout the history of the United States. Since the early Colonial history of the Uni ...
*
Redlining Redlining is a Discrimination, discriminatory practice in which financial services are withheld from neighborhoods that have significant numbers of Race (human categorization), racial and Ethnic group, ethnic minorities. Redlining has been mos ...
*
Reparations for slavery in the United States Reparations for slavery is the application of the concept of reparations to victims of slavery or their descendants. There are concepts for reparations in legal philosophy and reparations in transitional justice. In the US, reparations for sla ...
* Sociology of race and ethnic relations *''
The Whiteness of Wealth Dorothy A. Brown (born 1960) is a law professor known for her work on the racial implications of federal tax policy. Brown was previously Asa Griggs Candler professor of law at Emory University, and is now the Martin D. Ginsburg Chair in Taxation a ...
'' *
Tulsa race massacre The Tulsa race massacre was a two-day-long white supremacist terrorist massacre that took place in the Greenwood District in Tulsa, Oklahoma, between May 31 and June 1, 1921, when mobs of white residents, some of whom had been appointed as ...


References

* {{Social issues in the United States Economic inequality in the United States Race in the United States Social class in the United States