, Columnist
How to Reduce the Black-White Wealth Gap
The key is ensuring that minorities earn better returns on their investments.
Poverty begets poverty.
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A very interesting report on the racial wealth gap just came out. A team of researchers led by economists William Darity Jr. and Darrick Hamilton set out to illustrate the scale of the problem, and to debunk certain myths surrounding the issue. Their results are sobering, but also offer important insight into how the problem might be addressed.
The racial wealth disparity between white and black Americans is stark and persistent. Some portion can be explained by differences in education, homeownership and employment, but the authors show that even controlling for these factors, the gap is huge: