The Wealth Gap Between Black, White, and Latino Families in the US is Astounding
In a paper titled "The Racial Wealth Gap: Why Policy Matters," research from the Institute on Assets and Social Policy (IASP) at Brandeis University and public policy organization Demos examined the disparities in wealth held by black, white, and Latino households in the US.
The difference is staggering.
We first came across this study via Laura Shin at Forbes, who points out that among the many races in the US, these three cohorts were studied because the populations are large enough to be statistically significant.
The IASP and Demos used data from a 2011 national survey conducted by the Census Bureau called the Survey of Income and Program Participation (SIPP) — you can read the full methodology here.
The wealth gap in this study is defined as "the absolute difference in wealth holdings between the median household among populations grouped by race or ethnicity," writes Demos. "The US racial wealth gap is substantial and driven by public policy decisions."
Substantial is right. Take a look at this chart from page seven:
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