What the Big New Study About Race and Mobility Doesn’t Tell Us
Sources of non-wage income like stock options and inherited wealth vary greatly by race. Given the history of housing discrimination and job discrimination in the United States, inherited resources vary greatly. The Federal Reserve’s Survey of Consumer Finances found that 26 percent of white Americans receive inheritances, compared to only 8 percent of black Americans. Meanwhile, black families are half as likely to own businesses as white families. Research led by Darrick Hamilton and William Darity Jr. shows that wealth disparities, especially within inherited wealth, hold back black families with similar educational credentials as white families from achieving the same level of financial stability.
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