The U.S. Census Bureau and Harvard University researchers released a report in late July that indicates that while the low-income earnings gap between Blacks and whites has narrowed, the gap between low-income and high-income young white adults has widened.
What the heck does this mean?
What’s the bottom line? Well, it appears that young Blacks are making some economic progress — even though the gap between Blacks and whites is still too wide — while on the other hand, young whites from low-income families appear to be faring much worse than they did in previous generations. The study’s findings are insightful.
To begin with, the analysis focused on the evolution of income mobility between only two generations that were about 15 years apart. The first group included children born in 1978 and the second group looked at those born in 1992. The study considered the income levels of the two groups at the age of 27. And it included children born to both low-income parents (about $26,000 annual income) and high-income parents (about $95,000 annual income).
The findings revealed that Black children born to low-income parents in 1978 went on to earn $12,994 less per year than their white counterparts. However, for Black children born to low-income parents in 1992, the earnings gap shrunk by nearly a third, to $9,521.
On the other hand, white children who were born to high-income parents in the 1978 cohort went on to earn $10,383 more than low-income whites born that year. For those born in 1992, the class gap among whites rose to $13,202, an increase of nearly a third.
The
report credited the shrinking race gap between Black and white
low-income earners to a combination of “improved mobility” for
low-income Black children and “declines in earnings” for low-income
white children.
The
growing class gap was credited to both declining mobility for white
children from low-income households and improvements in mobility of
white children from high-income households.
There
was hardly any noticeable change in the class gap for Black children
during the study periods because Black children — whether they are born
to high- or low-income parents — saw comparable improvements in their
earnings.
Earnings were not the only
area where the gaps closed between Blacks and whites. According to the
report, similar patterns of shrinking race gaps and growing class gaps
were also noted in other areas. Included among them were shrinking gaps
in educational attainment, standardized test scores, marriage rates and
mortality.
For those
of us in the Black community who continue to look for evidence of
tangible progress toward equity in this country, this report noted that
“the likelihood of growing up in a low-income household and remaining
low-income as an adult actually narrowed by nearly 75% between Black and
white children born in 1978 and 1992.”
The
narrowing gap is attributed to the combination of a 6% decrease in
poverty persistence among Black children and a 5% increase in poverty
persistence among white children.
This
study also looks at trends by county. While Black-white race gaps
shrank and white class gaps expanded in nearly every part of the
country, the magnitude of these changes varied substantially across
regions.
The change in
household income among Blacks in San Bernardino County, California,
between 1978 and 1992 cohorts was an increase of 4.3%. For Riverside
County the increase was far less, at 0.9%.
Finally,
the research found there were few earnings changes among other racial
and ethnic groups during the periods included in the report.
Although
this data is indicative of some progress, the quest for economic equity
persists. As a result, the struggle for economic justice continues.
This story was originally published at Black Voices News.