Racial Differences in Patterns of Wealth Accumulation

Gittleman, Maury; Wolff, Edward N.

doi:10.2307/3559010

Cited by 184 publications

(136 citation statements)

References 36 publications

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“…For example, low‐income households hold different assets compared to higher income households, and the difference can be attributed to more than just the difference in income (Ziliak ; Scholz and Sheshadri ). African American families hold less wealth compared to other families, and the difference persists even when controlling for demographic characteristics and income (Blau and Graham ; Jayakody ; Chiteji and Hamilton ; Gittleman and Wolff ; McKernan et al ). In addition to the existing differences in wealth, research has shown that there is substantial intergenerational persistence of wealth, as children mimic parents and learn from them (Charles and Hurst ).…”

Section: Introductionmentioning

confidence: 99%

The Impact of SNAP Vehicle Asset Limits on Household Asset Allocation

Baek¹,

Raschke

2016

Southern Economic Journal

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Beginning in 2001, states were given the authority to formulate their own rules on how vehicles are counted toward the asset limit in the Supplemental Nutritional Assistance Program. We exploit differences in timing of the state vehicle asset policy changes to identify their effect on vehicle assets and debts, car ownership, liquid assets holdings, as well as non‐housing wealth. We estimate difference‐in‐differences and household fixed effects specifications and find that liberalizing vehicle asset rules increases vehicle assets of households with a high ex ante probability of program participation. Households also take on more debt to finance their vehicles. The increase in car value can be attributed primarily to less educated single parents who already owned a car before the policy change buying more expensive cars.

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Section: Introductionmentioning

confidence: 99%

The Impact of SNAP Vehicle Asset Limits on Household Asset Allocation

Baek¹,

Raschke

2016

Southern Economic Journal

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“…Race remains a significant predictor of net financial assets after controlling for household income and head's age, education level, work experience, and marital status (Oliver and Shapiro 2006). Part of this may be due to the fact that accumulated assets are more highly skewed compared with household income (Conley 1999;Gittleman and Wolff 2004;Mishel et al 2009;Oliver and Shapiro 2006;Shapiro 2004;Sherraden 1991;Wolff 2002). For instance, while blacks earn about 62% of the median household income earned by whites, they hold 10% of median net worth and 1% of the median net financial assets held by whites (Mishel et al 2009).…”

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confidence: 97%

“…However, disparities are reduced, and in some cases, the direction of the relationship reverses after controlling for household income. Any remaining disparities disappear altogether after controlling for household income and head of household's age, gender, education level, marital status, and number of children (Gittleman and Wolff 2004). In other words, blacks' personal savings rate may be as high as or higher than that of whites after controlling for household income and other factors.…”

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confidence: 97%

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Predicting Savings for White and Black Young Adults: An Early Look at Racial Disparities in Savings and the Potential Role of Children’s Development Accounts (CDAs)

Friedline

Elliott

2011

Race Soc Probl

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This paper explores predictors of young adults' savings using propensity score analysis and logistic regression with separate, longitudinal samples of whites and blacks aged 17-23 from the Panel Study of Income Dynamics. We ask who saves among adolescents and young adults and whether the likelihood of having a savings account and the amount saved in young adulthood can be predicted by two factors: (1) having a savings account during adolescence and (2) having families who own assets. The majority of white (90%) and black (64%) young adults had savings; however, blacks saved about 3% the amount saved by whites, suggesting that young adults' savings may be patterned after disparities in the distribution of assets and families may transfer a financial advantage to young adults. Logistic regression results find that among whites, future orientation was a significant predictor of having a savings account in young adulthood. A notable trend level finding was that white young adults were more likely to have a savings account when they had a savings account as adolescents. Among blacks, academic achievement and household size were significant predictors of having a savings account in young adulthood. If confirmed in future research, findings suggest that Children's Development Accounts may be one way to reduce racial disparities in savings by intervening at a young age and providing universal accounts to improve savings across the life course.

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“…Oliver and Shapiro () find that asset poverty (and wealth) is passed between generations, regardless of occupational and educational mobility. Investigations of the wealth gap have attributed the bulk of the gap to differences in inheritances and intergenerational transfers between black and white families, rather than to differences in rates of savings or returns on assets (Gittleman and Wolff, ). This finding was reinforced by Scholz and Levine (), who found that wealth differences across race are large and cannot be accounted for by age or educational attainment.…”

Section: Introductionmentioning

confidence: 99%

Parental Wealth and the Black–White Mobility Gap in the U.S.

Fox

2015

Review of Income and Wealth

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Utilizing longitudinal data from the Panel Study of Income Dynamics (PSID), this paper examines the relationship between parental wealth and intergenerational income mobility for black and white families. I find that total parental wealth is positively associated with upward mobility for low‐income white families, but is not associated with reduced likelihood of downward mobility for white families from the top half of the income distribution. Conversely, I find that total parental wealth does not have the same positive association for low‐income black families, while home ownership may have negative associations with the likelihood of upward mobility for these families. However, for black families from the top half of the income distribution, home equity is associated with a decreased likelihood of downward mobility, suggesting a heterogeneous relationship between home ownership and mobility for black families.

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Racial Differences in Patterns of Wealth Accumulation

Cited by 184 publications

References 36 publications

The Impact of SNAP Vehicle Asset Limits on Household Asset Allocation

The Impact of SNAP Vehicle Asset Limits on Household Asset Allocation

Predicting Savings for White and Black Young Adults: An Early Look at Racial Disparities in Savings and the Potential Role of Children’s Development Accounts (CDAs)

Parental Wealth and the Black–White Mobility Gap in the U.S.

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