By Naomi Cahn | Forbes
What that means is that the net worth of a typical white family is approximately $162,00, while the typical Black family has $16,000 and the typical Hispanic family as about $21,000,
The new Fed information was part of a larger analysis of just how much it pays to go to college: the average wealth of college-educated households is more than twice that of non-college-educated households. College-educated households, for example, have a much higher share of stocks and business assets, and equity prices have been increasing.
One solution is to work on decreasing the college graduation gap: whites are more likely than blacks to attend college, and while just over one-fifth ( 22.8%) of Blacks between the ages of 25-29 have graduated from college, that is true for more than 40% (42.1%) of whites.
Plus, Black families are 1.3 times more likely than are white families to have student debt, while their balances are 1.7 times higher.
Black college graduates then have higher unemployment rates and, when they find a job, lower pay.
White single college-educated women, for example, have seven times as much wealth as do comparable Black women.
Thus, while college education is correlated with higher income and wealth, college graduation is not enough to affect the gap. Consequently, “the payoffs” from college education are typically lower for Blacks and Hispanics than for whites and Asians, so higher education unintentionally has become an engine for widening disparities.
The report, authored by Anne Price, argues for the need to rethink current approaches to racial wealth inequality.