Report
Accounting for Black-White Wealth Differences
Dec 7, 2022
Despite post–Civil Rights era racial progress, middle-class African Americans continue to face more economic obstacles than white Americans. In this report, the author reviews research on the intergenerational downward mobility rates of middle-class African Americans; examines the impact of race, gender, and parental income on adult children's income; and discusses several factors that may contribute to the instability of the Black middle class.
A Review of Challenges for the Black Middle Class
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Research on post–Civil Rights era racial progress often points to the growth of the Black middle class as evidence that opportunities for racial minorities in the United States have improved over the past several decades. Yet, even when African Americans reach the middle class, they may have trouble maintaining their position. Several studies have demonstrated that African Americans face disproportionately high downward mobility rates, meaning that Black children who grow up in middle-class households are less likely than white children who grow up in middle-class households to replicate their parents' socioeconomic status.
In this report, part of a discussion paper series investigating the U.S. racial wealth gap, the author provides an overview of research on the intergenerational downward mobility rates of middle-class African Americans. Using various data, the author examines the impact of race, gender, and parental income on adult children's income.
The author then discusses factors that may contribute to the disproportionately high downward mobility rates for African Americans who grow up in middle-class households, such as educational attainment, occupational experiences, neighborhood circumstances, wealth, persistent racism and discrimination, and economic recessions. Research findings suggest that the combined impact of such factors perpetuates the instability of middle-class African Americans and the racial wealth gap.
Funding for this research was provided by gifts from RAND supporters and income from operations. The research was conducted by RAND Education and Labor.
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