Black asset ownership: Does ethnicity matter?

Martin, Lori Latrice

doi:10.1016/j.ssresearch.2008.11.003

Cited by 8 publications

(13 citation statements)

References 18 publications

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“…Future research should more closely examine whether and how liquid financial assets are used in response to shocks of varying frequency and magnitude, and how this variation in shocks and assets is related to hardship experiences. Lastly, while we observe black-white differences in liquid financial assets, we did not observe the ethnicity of black participants, whereas wealth has been found to vary according to black individuals' ethnicity (Martin 2009). …”

Section: Study Limitationscontrasting

confidence: 79%

Financial Shocks, Liquid Assets, and Material Hardship in Low- and Moderate-Income Households: Differences by Race

et al. 2018

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Low-and moderate-income (LMI) households need financial assets to help cope with income and expenditure shocks. Prior research identifies racial differences in wealth and wealth effects. We examined whether these gaps and effects exist for liquid financial assets. Using group invariance tests in structural equation modeling, we assessed the relationship between financial shocks and material hardship, as mediated by liquid financial assets and moderated by race/ethnicity among a sample of LMI tax filers (N = 7544). Though most study participants were employed (71%), average income was only $18,055 and average liquid financial assets was $4701. Black households had $2774 less in liquid financial assets compared to white households (p < .001) after controlling for income and other factors. Model fit for the final moderated mediation model was excellent (RMSEA = 0.026, 90% C. I. [0.020, 0.033], CFI = 0.977). The mediating effect of liquid financial assets was 10.4% for white, but only 3.6 and 4.4% for black and Latino households, respectively. That is, the proportion of the relationship between shocks and hardship mediated by liquid financial assets varied by race/ethnicity. Policies aimed at helping LMI households build emergency savings such as tax refund savings matches may be less likely to benefit black and Latino households than white households, suggesting the need for other policies to address this form of the racial wealth gap.

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Section: Study Limitationscontrasting

confidence: 79%

Financial Shocks, Liquid Assets, and Material Hardship in Low- and Moderate-Income Households: Differences by Race

et al. 2018

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“…Furthermore, college students from minority families may benefit differently from household assets and debt. This could be due in part to differences across racial/ethnic groups in the compositions of assets and their associated returns (Brown, 2007;Carasso & McKernan, 2008;Choudhury, 2001Choudhury, -2002Keister, 2000;Martin, 2009). For example, Whites are more likely to own risky, high-return assets (such as equities) than are Blacks and Hispanics (Brown, 2007;Choudhury, 2001Choudhury, -2002Keister, 2000).…”

Section: Race Ethnicity Assets and Debtmentioning

confidence: 99%

The impact of family assets and debt on college graduation

Zhan

Lanesskog

2014

Children and Youth Services Review

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This study examines the influence of family financial assets and debt, both measured during the time of youth's college enrollment, on the chances of college graduation. Data come from the National Longitudinal Survey of Youth. Results from analyses controlling for a number of student, parental, and institutional characteristics indicate that family assets are positively related to the chances of college graduation among White and Black students; family debt is negatively associated with the odds of college graduation among Black students, but neither family assets nor family debt is related to the chances of college graduation among Hispanic students. Overall, results indicate that family assets and debt explain a small portion of racial/ethnic gaps in college graduation. Policy implications are considered.

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“…Some of the variation in asset accumulation and homeownership patterns is explained by household compositional differences, including variation in marital status, between Whites and minorities (Blau and Graham, , Alba and Logan, , Martin, , Yu and Myers, ). For example, since Blacks are significantly less likely to be married than Whites, and marriage is highly predictive of homeownership, Blacks are less likely to be homeowners.…”

Section: A Brief Review Of Homeownership In the Usamentioning

confidence: 99%

“…Blacks have historically been disadvantaged on a variety of socioeconomic indicators compared with Whites (Martin, , Lieberson, , Massey and Denton, , Shapiro, , Wilson, , Blau and Graham, , Pattillo‐McCoy, ). On average, lower levels of education and lower salaries than Whites help to limit Blacks' entrance into homeownership.…”

Section: Black Homeownershipmentioning

confidence: 99%

“…Blacks are generally more likely than Whites to report that their overall net worth is either zero or negative. Blacks who do own assets consistently report lower levels of asset value as compared with Whites (Martin, , Oliver and Shapiro, , Blau and Graham, ). Homeownership is even more important for Blacks than Whites because it accounts for a larger proportion of their wealth since Blacks are less likely to hold other investment products such as stocks (Oliver and Shapiro, , Squires and Kubrin, ).…”

Section: Black Homeownershipmentioning

confidence: 99%

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