Economic Mobility of Black and White Families
The American Dream that one can rise up from humble beginnings and achieve a comfortable middle-class living, if not attain great wealth, transcends racial lines. But is it a reality for black and white families alike?
This report reviews overall income trends based on Census Bureau data and provides an intergenerational economic mobility analysis based on a longitudinal data set that allows a direct match of the family income of parents in the late 1960s to their children's family income in the late 1990s to early 2000s.
In brief, the report finds a significant racial gap in mobility. Trends show that median family incomes have risen for both black and white families but less so for black families. Moreover, the intergenerational analysis reveals a significant difference in the extent to which parents are able to pass their economic advantages onto their children. Whereas children of white middle-income parents tend to exceed their parents in income, a majority of black children of middle-income parents fall below their parents in income and economic status.
- Figure 1: Median Personal Income of White and Black Men and Women Ages 30-39 (2004 Dollars)
- Figure 2: Median Family Income of White and Black Adults, Ages 30-39 (2004 Dollars)
- Figure 3: Family Compostion of White and Black Adults, Ages 30-39
- Figure 4: Percent of Children with Family Income above their Parents' Family Income, by Race
- Figure 5: Children's Income, by Race, Compared to Parental Income and Generational Average (2006 Dollars)
- Figure 6: Chances of Getting Ahead or Falling Behind in Income Ranking, by Parental Income and Race
- Table 1: Parents' Income of White and Black Children in PSID Sample
