Research: Racial Differences in Household Wealth in The United States

1154 WordsJun 15, 20185 Pages
The wealth difference that exists between African and Caucasian men is vast and expanding (Charles & Hurst, 2002). After accounting for huge dissimilarities in income, family structure and wealth, the gap portion which remain unexplained may be attributed to belief, behavior and value differences between these groups. Despite an enormous and persistent black-white gap, many proclaim that society has transcended the racial divide (Hamilton, 2009). Wealth is a paramount indicator of social well-being. Wealthier individuals are better positioned to afford elite education, access capital to start businesses, reside in higher-amenity neighborhoods, exert political influence through campaign contributions, and withstand financial hardship…show more content…
Wealth tends to be highest among married couples (Smith 1995a). Married couples tend to save more than other household types (Lupton and Smith 1999). Savings among married couples tend to be higher as the duration of the marriage increases (Lupton and Smith 1999). Both blacks and whites views marriage as a potential positive in acquiring wealth; however, neither groups view married as essential for financial success. A higher number of black participants were married compared to white in the study. Those with dual earners, maximum one child, strongly viewed marriage as positive in acquiring wealth. How do external factors such as social security and military pension change groups’ view of wealth? None of the active duty members were eligible for social security benefits. However, all were aware of the twenty year pension plan offered by the United States military. The influence of a military pension and service members’ wealth perception varied based on their rank and family size. Both blacks and whites with more than two or more dependents viewed wealth as the ability to purchase household essentials. The idea of a military pension was viewed as largely positive among black and white single service members. How do family socio-economics construct groups’ view of wealth? The
Open Document