1Racial InequalityIncome & Income Inequality2Mean Household Income, by Quintile, 20000200004000060000800001000001200001400001600001st 2nd 3rd 4th 5th• 1st$10,188• 2nd$25,331• 3rd$42,359• 4th$65,727• 5th$141,621Source: US Census Bureau data for 2000, CPSCutoffs for Household Income Quntiles, 2001Source: US Census Bureau data for 2000, CPS + Surveys of Sociology 220 Students15%41%23%13%8%0%Fall 2002 Soc 220>$150,499>$83,500<$83,500<$53,000<$33,314<$17,9702001(national)10%Top 5%42%Top 20% (15% of total)30%Next Highest 20%10%Middle 20%4%Next Lowest 20%4%Bottom 20%Spring 2003 Soc 2203Fall 2002 StudentsIn/Out of State by Income GroupOutState WisconsinLowest 20% 0% 0%20-40% 8% 7%Middle 20% 8% 15%60-80% 25% 22%80-95% 42% 41%top 5% 17% 15%Spring 2003 StudentsIn/Out of State by Income GroupOutState WisconsinLowest 20% 3% 6%20-40% 6% 0%Middle 20% 9% 12%60-80% 25% 35%80-95% 47% 35%top 5% 9% 12%4Relation Between Own Income Group and Predicted Income Group, Fall 2002 Soc 220Actual Rank %low % correct %high20-40% 33% 67%Middle 20% 60% 40%60-80% 22% 44% 33%80-95% 63% 25% 13%Relation Between Own Income Group and Predicted Income Group, Spring 2003 Soc 220Actual Rank %low % correct %high20-40% 25% 75%Middle 20% 20% 0% 80%60-80% 40% 40% 20%80-95% 43% 52% 5%top 5% 80% 20%5Own Family Income Quintile and Estimated Median Income (Spring 2003 Soc 220)$50,000Top 5%$37,500Top 5-20%$30,000Next highest 20%$25,000Middle 20%$26,500Next lowest 20%$10,000Lowest 20%Median of Estimated Median IncomeOwn Family Income QuintileActualMedian$42,228in 2001Median Household income by race6Median Household Income, 2001(Includes Families and Non-Families)$31,700$ 33,565Hispanic$31,800American Indian$52,600$ 53,635Asian$28,700$ 29,470Black$43,800$ 46,305White, Not Hisp.$ 42,228All1998-2000 Median 2001RaceMedian Household Income by Race 1998-20000100002000030000400005000060000White NH Black Asian Hispanic AmerInd7Median Household Income over time, by racePoverty by race over time8PovertySource: U.S. Census, Poverty in the United States: 2001, P60-219, Table 1. Poverty by Race& Family Type0510152025303540Married Couple Female Head% in PovertyWhite Black Hispanic Asian/ PIWisc poverty wagesSource: Center on Wisconsin Strategy, www.cows.org9Indiv Income by race, educ, sex 1999Income Full-Time Workers 199910000200003000040000500006000070000lt 9 9-12 HS grad somecollegeAA BA MABlack Male Hisp Male White NH Male Black Female Hisp Female White NH FemaleWhite menBlack menHispanic menWhite womenHispanic womenblack womenSource: US Census Bureau data for 1999, CPSIncome, Race, Sex over TimeMedian Income as Percent of White Males, 1970-199640%50%60%70%80%90%100%110%1970 1975 1980 1985 1990 1995 1998WhiteMenBlackMenHispanicMenWhiteWomenBlackWomenHispanicW omen10WealthIs More Unequal Than IncomeSources for Following Slideswww.inequality.orgpulls together statistics from a variety of official sources which are documented on their web page11Source: inequality.org. Source: Edward N. Wolff, "Recent Trends in Wealth Ownership, 1983-1998," April 2000. Table 2. Available on the website of the Jerome Levy Economics Institute at www.levy.org/docs/wrkpap/papers/300.htmlDistrib of net worthSource: Edward N. Wolff, "Recent Trends in Wealth Ownership, 1983-1998," April 2000. Table 3. http://www.levy.org/docs/wrkpap/papers/300.html inequality.orgQuintile change in net worth 1983-9812Median Family Net Worth$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,0001983 1989 1992 1995 1998White African-American HispanicHome Ownership0%10%20%30%40%50%60%70%80%1983 1989 1992 1995 1998White African-American Hispanic13Financial WealthMedian Family Financial Wealth$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,0001983 1989 1992 1995 1998White African-American HispanicRace and Income Affect Net WorthMedian Net Worth 1994Source: Dalton Conley, Being Black, Living in the Red$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000<$15,001 $15,001-$35,000 $35001-$50,000 $50,001-$75,000 >$75,000 AllYearly Family IncomeWhite Black14Median Home Equity by Race, IncomeMedian Home Equity 1994Source: Dalton Conley, Being Black, Living in the Red$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000$100,000<$15,001 $15,001-$35,000 $35001-$50,000 $50,001-$75,000 >$75,000 AllYear ly Family IncomeWhite BlackFinancial Wealth by Race, IncomeMedian Financial Wealth (Net Worth Minus Home Equity) 1994Source: Dalton Conley, Being Black, Living in the Red$0$20,000$40,000$60,000$80,000$100,000$120,000$140,000$160,000$180,000$200,000<$15,001 $15,001-$35,000 $35001-$50,000 $50,001-$75,000 >$75,000 AllYearly Family IncomeWhite Black15“In The Red” (Debts Greater than Assets)Percent In the Red (Owe More than Their Assets) 1994Source: Dalton Conley, Being Black, Living in the Red0%10%20%30%40%50%60%<$15,001 $15,001-$35,000 $35001-$50,000 $50,001-$75,000 >$75,000 AllYearly Family IncomeWhite BlackGetting Ahead• Parents’ education is the major predictor of children’s education• Net of parents’ education, family wealth is a more important predictor of going to college than family income16Summary• There is substantial wealth and income inequality by race in the US• Much of this is due to the accumulation of past disadvantage• At least some of it is due to the effects of current discrimination– In employment– In housing– In the “climate” on college campuses• Affirmative Action was/is promoted to address these
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