The Political Economy of Education, Financial Literacy, and the Racial Wealth Gap

Monday, April 17, 2017
Federal Reserve Bank of St. Louis Review, Vol. 99, Issue 1

A recent article by William A. (“Sandy”) Darity, Jr., director of the Samuel DuBois Cook Center and Samuel DuBois Cook Professor of Public Policy, African and African American Studies, and Economics at Duke University, and Darrick Hamilton,  Associate Director of Cook Center and Professor of Economics and Urban Policy, Milano School of International Affairs, Management and Urban Policy & Department of Economics, New School for Social Research, examines the mismatch between the political discourse around individual agency, education, and financial literacy, and the actual racial wealth gap. Darity and Hamilton argue that the racial wealth gap is rooted in socioeconomic and political structure barriers rather than a disdain for or underachievement in education or financial literacy on the part of Black Americans, as might be suggested by the conventional wisdom. Also, the article presents a stratification economic lens as an alternative to the conventional wisdom to better understand why the racial wealth gap persists.

Read the full article here