Racial Economic Inequality Amid the COVID-19 Crisis - Bradley L. Hardy and Trevon D. Logan
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ESSAY 2020-17 | AUGUST 2020
Racial Economic Inequality Amid the COVID-19 Crisis
Bradley L. Hardy and Trevon D. Logan
i
The Hamilton Project • BrookingsMISSION STATEMENT
The Hamilton Project seeks to advance America’s promise of
opportunity, prosperity, and growth. The Project’s economic
strategy reflects a judgment that long-term prosperity is best
achieved by fostering economic growth and broad participation
in that growth, by enhancing individual economic security,
and by embracing a role for effective government in making
needed public investments. We believe that today’s increasingly
competitive global economy requires public policy ideas
commensurate with the challenges of the 21st century. Our
strategy calls for combining increased public investments in key
growth-enhancing areas, a secure social safety net, and fiscal
discipline. In that framework, the Project puts forward innovative
proposals from leading economic thinkers — based on credible
evidence and experience, not ideology or doctrine — to introduce
new and effective policy options into the national debate.
The Project is named after Alexander Hamilton, the nation’s
first treasury secretary, who laid the foundation for the modern
American economy. Consistent with the guiding principles of
the Project, Hamilton stood for sound fiscal policy, believed
that broad-based opportunity for advancement would drive
American economic growth, and recognized that “prudent
aids and encouragements on the part of government”
are necessary to enhance and guide market forces.
ii
The Hamilton Project • BrookingsRacial Economic Inequality Amid the COVID-19 Crisis
Bradley L. Hardy
American University
Trevon D. Logan
The Ohio State University
AUGUST 2020
This policy essay is an essay from the author(s). As emphasized in The Hamilton Project’s original strategy
paper, the Project was designed in part to provide a forum for leading thinkers across the nation to put
forward innovative and potentially important economic policy ideas that share the Project’s broad goals of
promoting economic growth, broad-based participation in growth, and economic security. The author(s)
are invited to express their own ideas in policy papers, whether or not the Project’s staff or advisory
council agrees with the specific proposals. This policy paper is offered in that spirit. The author(s) did not
receive financial support from any firm or person with a financial or political interest in this article. They
are currently not an officer, director, or board member of any organization with an interest in this article.these gaps have widened over the second half of the 20th
Introduction century.
COVID-19 confronts Americans with two crises: a public Growth in the Black–white wage gap has accelerated in recent
health crisis and an economic crisis. The two operate together, years, as evidenced by a more than 20 percent increase in the
since the public health crisis has dramatically reduced Black–white wage gap between 2000 and 2020 (Gould 2020;
economic activity and overall spending. Moreover, this crisis Wilson 2020). Wage earnings are the largest subcomponent of
has broader distributional consequences than any economic income, which represents the total ongoing flow of resources
event in recent memory, altering most aspects of how we live, available to households independent of wealth, and in many
work, and conduct business—and in truth, who will survive. instances contribute to wealth accumulation.
Across the economy and society, the distributional This wage gap in part reflects persistent racial differences in
consequences of COVID-19 are uneven: the pandemic labor market outcomes. Black workers are more likely to work
and its broader economic and health consequences are within the low-wage labor market (Chandra 2000; Gould and
disproportionately impacting Black Americans. Wilson 2020; Hardy, Smeeding, and Ziliak 2018). In addition
to lower average earnings, Black workers face work hours that
The outsized challenges that Black Americans are facing are a are less predictable, along with harder-to-predict schedules
reflection of the generally diminished economic position and (Schneider and Harknett 2019), and relatively unstable
health status that they faced prior to this crisis. Several pre– employment overall (Ziliak, Hardy, and Bollinger 2011).
COVID-19 economic conditions—including lower levels of Black workers also disproportionately reside in states where
income and wealth, higher unemployment, and greater levels the relatively low federal minimum wage is binding (Wilson
of food and housing insecurity—leave Black families with 2019).
fewer buffers to absorb economic shocks and contribute to
Black households’ vulnerability to the COVID-19 economic Moreover, Black workers have higher income volatility,
crisis. driven in large part by higher joblessness and employment
exits historically (Casey and Hardy 2018; Ziliak, Hardy, and
The interaction of those pre–COVID-19 economic and health Bollinger 2011). These racial earnings and employment gaps
disparities—including a higher rate of preexisting health are strongly driven by labor market discrimination (e.g.,
conditions such as hypertension and lung disease—has Bertrand and Mullanaithan 2004; Holzer, Raphael, and
contributed to higher COVID-19 mortality rates for Black Stoll 2006). Skills do not appear to close these gaps, either;
Americans (e.g. Benitez, Courtemanche, and Yelowitz 2020; Black Americans receive lower, albeit positive, returns to
Weimers et al. 2020). According to the APM Research Lab, post-secondary education relative to other groups (Bartik
Black Americans continue to experience the highest overall and Hershbein 2018). Rather, these racial earnings and
actual COVID-19 mortality rates (80.4 per 100,000)—more employment gaps are strongly driven by labor market
than twice the rate of white Americans (35.9 per 100,000) discrimination (e.g. Bertrand and Mullanaithan 2004; Holzer,
or Asian Americans (33.1 per 100,000), who have the lowest Raphael, and Stoll 2006).
COVID-19 mortality rates. In 2020 more Black Americans
will die of COVID-19 than will succumb to diabetes, strokes, As a result of those racial differences, the typical Black
accidents, or pneumonia. In fact, COVID-19 is currently worker and family have lower earnings with which to absorb
the third leading cause of death for Black Americans (APM a large-scale economic shock such as the one brought on by
Research Lab 2020). COVID-19.
Black families, relative to other families, also generally lack
the savings and wealth that provide a buffer in the event of
Lower Wealth, Lower Income, job loss or unanticipated expense volatility—for example,
and Weaker Labor Market to handle emergency medical expenses or transportation
expenses (Darity and Mullen 2020; Emmons, Kent, and
Outcomes Ricketts 2018; Pfeffer and Killewald 2017). Recent research
has shown that, even at the same income level as white
Median net worth of white families is 10 times higher households, Black households have more-severe and more-
than that of Black families (McIntosh et al. 2020). Such prolonged consumption declines for the same income
racial wealth gaps are well-documented and attributable shock (Ganong et al. 2020); this shows the vulnerability of
to historical discrimination and exclusion from education, Black households relative to other households in the face of
housing, capital, and loanable funds markets. Importantly, economic disturbances (Board of Governors of the Federal
Reserve System 2020). The consensus explanation for this
2
The Hamilton Project • BrookingsFIGURE 1.
Median Family Income and Net Worth in 2018, by Race
180
160
140
Thousands of 2018 dollars
120
100
80
60
Income
40
Net worth
20
0
Black White All households
Source: Current Population Survey Annual Social and Economic Supplement (ASEC) 2019; Survey of Consumer Finances (SCF) 2016; authors’ calculations.
Note: Income data are from the 2019 ASEC, which measures income in 2018. Net worth data are from the 2016 SCF, adjusted for inflation to 2018 dollars.
greater intensity of economic shocks is the relative lack of lower rates of income mobility than white Americans. Finally,
wealth among Black households (Ganong et al. 2020; Maxwell Black Americans generally received inferior public goods,
and Solomon 2020). limited investment in human capital, and insufficient legal
protection.
Figure 1 shows Black–white income and wealth gaps in
2018. In the most recently available data, the median Black We call attention to the case of homeownership. Among
household’s income is approximately $40,000, relative to the all racial groups, Black Americans are the least likely to
median white household’s income of approximately $70,000. be homeowners, and Black homeownership lags white
Median Black net worth is less than $20,000, which is roughly homeownership considerably even after controlling for
10 percent of white median net worth. Taken together, the education, age, and geographic location (Choi et al. 2019). In
package of economic resources available to Black families fact, Black homeownership today is at a lower level than it was
is far weaker and less capable of buffering against economic 30 years ago (Olsen 2018).
insecurity.
For the Black Americans that do own homes, research has
There are several historical factors behind the large and shown that Black households pay significantly more in
growing racial wealth gap. First, large wealth transfers in property taxes than other groups, on average more than 10
American history deliberately excluded Black Americans. percent higher (Van Dam 2020; Wiltz 2020). This is due to
These include the Homestead Act, Southern Homestead the fact that although properties owned by Black Americans
Act, GI Bill, Veterans Benefits, and other wealth transfers. are generally less valuable than properties owned by others,
Second, Black Americans faced intense discrimination in the assessors systematically overstate the value of Black
labor and credit markets, which not only blocked their access homes. And as Figure 2 shows, more Black households spend
to wealth, but also diminished the value of assets they were a greater share of their income on housing than do white
able to secure, such as housing. Third, Black Americans households or the average household. This results in a higher
were subject to wealth capture. There have been numerous cost of homeownership for Black households.
instances wherein Black wealth was stolen, expropriated, and
pillaged in racial attacks (Francis 2020); in addition, political
intimidation left Black Americans prone to underinvest, given
the strong disincentives imposed by a government apparatus
Convergence of the Economic and
historically permissive of, if not outright promoting, racial Public Health Crisis
injustice and violence against Black Americans (e.g., Acharya,
Blackwell, and Sen 2018; Darity and Mullen 2020). Fourth, The current context must be highlighted, since the already
housing policy deliberately limited the scope and scale of weaker economic position of Black workers is further
Black homeownership, the single greatest source of wealth. worsened by the unprecedented economic shock along with
Fifth, Black Americans, historically and today, have much a higher likelihood of Black Americans doing frontline,
3
The Hamilton Project • BrookingsFIGURE 2.
Share of Housing Cost Burdened Households in 2017, by Race
50 Cost burdened
45
40
Share of households
35
30 Severely cost
burdened
25
20
15
10
5
0
Black White All households
Source: American Housing Survey 2017; authors’ calculations.
Note: “Cost burdened” is defined as households whose housing costs represent at least 30 percent of the household’s income. “Severely cost
burdened” is defined as households whose housing costs represent at least 50 percent of the household’s income.
essential work during the pandemic. Work in the low-wage 58 percent of Black households do (Pew Research Center
employment sectors of America includes grocery store, retail, 2013). This increases the scope for exposure to COVID-19
food services, and health-related fields. This is a particularly in living quarters for Black households. For nearly all of
difficult convergence of circumstances: Black workers face a the health conditions that increase the likelihood of serious
higher likelihood of exposure to COVID-19, and have fewer COVID-19 complications, Black Americans have higher rates
economic resources to potentially avoid the health risks of prevelance (Centers for Disease Control and Prevention
associated with on-site employment where they are in direct [CDC] 2020). For example, Black Americans are more likely
contact with customers and coworkers (Gould and Wilson to have cancer (Simon 2019), to be obese, to have diabetes,
2020). and to have kidney disease relative to white Americans
(National Institute of Diabetes and Digestive and Kidney
Figure 3 shows the Black–white gap in employment in essential Diseases 2014). Black Americans also have higher rates of
work. While there are more white workers doing essential lung disease than do white Americans (Kochanek et al. 2019),
work, Black and Hispanic workers are disproportionately which is particularly pertinent for a respiratory illness such
likely to be essential workers. as COVID-19. Death rates among Black Americans due to
In particular, Black Americans are more than twice as diabetes, heart disease, kidney disease, and obesity are all
likely as the average worker to be employed in the health- higher than among white Americans (CDC 2018).
care support service industry, which has been decimated by
COVID-19 in assisted living facilities and nursing homes.
Black Americans are also significantly overrepresented in the How Changes in the Safety Net
personal care and service and food preparation industries,
which are disproportionately essential worker industries. and State Economic Relief Would
Black Americans also comprise more than a quarter of the
meatpacking industry’s frontline workforce, which has
Affect Black Households
seen several outbreaks of COVID-19. And, among those
The reduced demand and reduced economic activity related
out of the labor force, the outbreak of the virus among the
to COVID-19 ushered in large economic relief packages.
incarcerated has a disproportionate racial impact as well,
These have had positive impacts, likely reducing poverty
given the overrepresentation of Black Americans in the prison
and improving economic well-being as a result; nonetheless,
population (Cox 2015).
poverty will likely rise beyond levels observed during the
In addition to this, Black Americans on average share their Great Recession as the economic crisis continues without
living quarters with more people—while only 48 percent of additional significant policy intervention (Parolin and
white households have three or more members, more than Wimer 2020). For Black households affected by a pandemic-
4
The Hamilton Project • BrookingsFIGURE 3.
Essential Workers in 2020, by Race
70
60
50
Share of group
40
30
Essential
20 workers
Other
workers
10
0
Black White Hispanic Other
Source: Nunn, O’Donnell, and Shambaugh 2020.
Note: Data are from the Current Population Survey for April 2020. Please see the appendix table in Nunn, O’Donnell, and Shambaugh (2020) for a
detailed list of essential occupations.
related job loss, the policies proposed in the recent HEROES Americans (Pitts 2011). Such aid would also support state
act would cut poverty rates by an estimated 50 percent government safety-net programs as well as state government–
(Giannarelli et al. 2020). funded nonprofits that provide food and housing assistance.
In addition to providing aid to state residents facing
Given that Black Americans are overrepresented among the financial hardship, supporting nonprofits would help buoy
poor and near-poor (Heggeness and Hokayem 2014), they employment. Nonprofits represent 12 percent of the American
are more economically vulnerable during an economic crisis. workforce. Collectively, aid packages that retain government
This means that policy uncertainty surrounding the provision and nonprofit employment likely support the employment of
and extension of federal aid via transfer programs and many Black families.
social safety-net benefits—including federal unemployment
compensation and food assistance—disproportionately
affects Black households.
Consequences of COVID-19 for
Federal enhancements to safety-net programs administered
by state and local governments could yield substantial benefits Black Households
for many Black Americans, supplementing lower incomes
and the relatively lower benefits that many Black Americans The unprecedented public health and economic shock of
receive. Prior to COVID-19, evidence pointed toward stark COVID-19—and the additional burden placed on family
differences in the level of unemployment insurance benefits, economic resources and health—will potentially worsen the
cash assistance, employment security, and minimum wages already diminished long-run outcomes expected for Black
by state—with the implication that many Black Americans households. Even prior to COVID-19, long-run outcomes
were likely to receive relatively lower benefit levels due in were worsened by inequality in access to strong safety nets,
part to residing in less-generous states (Bitler and Hoynes along with low wealth, low and unstable incomes, and
2016; Edwards 2020; Floyd 2020; Hardy, Samudra, and Davis residency in high-poverty, segregated neighborhoods (e.g.,
2019; Parolin 2019; Wilson 2019). Separately, evidence also Morrissey and Vinopal 2018).
suggests that Black Americans face discrimination in the
In the current crisis, what is emerging is a very plausible link
welfare system (e.g., Fording et al. 2007). Accordingly, federal
between COVID-19 and race, with economic status as an
economic relief can help to mitigate these pre-COVID gaps in
important—though incomplete—mechanism. New research
safety-net generosity.
shows that a 10-percentage-point increase in the number
Federal aid to state governments would boost the aggregate of Black residents within a zip code is linked to 9.2 more
economy, in part by helping to maintain public-sector COVID-19 cases per 10,000 residents. Although a meaningful
employment—the largest labor market sector for Black share of this neighborhood-level disparity in COVID-19
cases can be explained by income mobility and incarceration
5
The Hamilton Project • Brookingsrate differences, much of the disparity remains unexplained one in five renters could face eviction by the end of September
(Benitez, Courtemanche, and Yelowitz 2020). (McKay, Neumann, and Gilman 2020). Throughout July
and August, evictions were already underway in many U.S.
Meanwhile, a relatively larger proportion of Black households, cities (Wiltz 2020). Much of this economic insecurity existed
and the dependent children within these households, face food pre–COVID-19, and housing represents a primary form of
insecurity (U.S. Department of Agriculture [USDA] 2018) financial distress (Ellen et al. 2020). Such forms of economic
and housing instability (Greene and McCargo 2020). Figure hardship have consequences for two generations as well,
4 shows measures of food insecurity among all households given that food insecurity (Alaimo et al. 2001) and housing
and households with children from April to July 2020, and instability (Brennan, Reed, and Sturtevant 2014; Hardy and
very low food security among children from June and July Marcotte 2020) are both negatively associated with children’s
2020. Food hardship is elevated over the past few months, as educational performance and achievement.
a result of job loss as well as the loss of subsidized school meal
programs through the K–12 educational system. The increase STRESSES FOR BLACK FAMILIES WITH CHILDREN
in food insecurity has occurred even though pandemic food Access to affordable and high-quality child care represents
assistance benefits have reduced these hardships substantially another challenge disproportionately affecting Black
(Bauer et al. 2020). families. Child care promotes learning and socioemotional
In the current economic environment, housing insecurity development during a child’s earliest years, and it facilitates
looms as a constant risk due to the potential for evictions parental labor force participation (Morrissey and Warner
and foreclosures. Between July 16 and 21, 2020, 12.5 percent 2007). In the absence of access to high-quality child care,
of Americans were experiencing housing distress—meaning many workers must make difficult choices about whether and
they were late on their rent or mortgage payments or their how they can ensure the safety and healthy development of
payments were deferred (Ricketts 2020). Housing distress their children during work hours. Child care was relatively
among Black renter families is more acute, at 30 percent of less affordable for Black families prior to the pandemic, and
Black renters compared to 15 percent of white renters. As they will now face additional supply constraints, given that
such, expiring eviction bans and loan forgiveness agreements many child-care centers have been closed in the interest
could exert additional pressure on many Black families. of public health. Owing to the convergence of economic
and public health considerations, this has adverse labor
Importantly, Black Americans are twice as likely to rent their market consequences for Black families, since they make
home as compared with their white counterparts (Brenson, up a disproportionate share of the workers in the child-care
Fulton, and Overton 2020). And, in the absence of continued sector—one that has lost a quarter of its jobs since the outset
federal aid or an accelerated economic rebound, as many as of the pandemic. Many essential workers without child-care
FIGURE 4.
Food Insecurity Rates during COVID-19, by Race
45
40
35
Food insecurity
Share of respondents
30 (among households
with children)
25
Food insecurity (all)
20
Very low
15
food security
10 (among children)
5
0
Black White All respondents
Source: Census Household Pulse Survey 2020; Schanzenbach and Tomeh 2020; authors’ calculations.
6
The Hamilton Project • Brookingsalternatives will choose between a set of bad choices: return to amount of stress related to COVID-19 on Black households
work with unstable or unsafe care options for their children, will continue to take a toll. Indeed, social scientists have
or forgo work altogether (Sethi, Johnson-Staub, and Robbins previously documented that exposure to toxic levels of stress
2020). within a child’s family and neighborhood environment could
translate to longer-term developmental consequences (Evans
Disconnectedness from in-person education represents and Wachs 2010; Ganzel and Morris 2011; Hardy, Hill, and
yet another mechanism that could disproportionately hurt Romich 2019; Shonkoff et al. 2012).
socioeconomic outcomes of Black Americans in the long run.
The potential racial and economic inequality emerging from
the shift to online education, and the differential responses
that affluent and white families are disproportionately able Conclusion
to make in response (e.g., at-home tutors and other supports),
could exacerbate educational achievement gaps (Bueno 2020). America’s economic situation has substantially deteriorated
As the pandemic exacerbates many forms of inequality, since the onset of the COVID-19 crisis. Gross domestic
including educational inequality, there are documented product fell at an annualized rate of 32.9 percent from April to
economic gaps in online educational engagement and the end of June 2020, the largest decline on record (Bureau of
participation (Opportunity Insights 2020). Such challenges Economic Analysis 2020). Families across race and ethnicity
will also shape the experiences of Black Americans who are feeling the pain, but Black Americans are generally in an
pursue postsecondary credentials and degrees. even weaker position to absorb this economic adversity. Black
families face a range of economic risks without the buffer
To the degree that educational activities are disrupted, it from stable employment, adequate earnings, or sufficient
may be more difficult for many Black students to restart savings and wealth accumulation.
along planned educational pathways. This is especially true
given that Black students’ families typically face harsher Amid substantial economic and policy uncertainty, there
economic conditions relative to their white counterparts. is the potential for this crisis to have negative, long-term
Lowered educational achievement and attainment could have economic and educational consequences. COVID-19 has
substantial long-term negative consequences. Initial survey exposed and further highlighted existing racial inequality
evidence points toward racial gaps in how COVID-19 has across economic and health status. As a result, these
disrupted educational plans; Black and Hispanic students are preexisting factors have left many Black families at greater
more likely to have altered or terminated their post-secondary risk to bear the consequences of this historic economic
education plans (Strada Center for Consumer Insights 2020). crisis. Inadequate additional federal economic relief—such
as legislation that does not provide enough unemployment
Stress levels for adults who are more likely situated in low-wage assistance and supplements to the safety net—potentially
work with high levels of scheduling instability are generally threatens the economic security of Black families (Brenson,
higher, which leads to greater psychological distress, lowered Fulton, and Overton 2020).
sleep quality, and lower self-reported happiness (Schneider
and Harknett 2019). The pandemic likely worsened these Ultimately, robust, reliable fiscal policy responses to the crisis
sources of stress in many workplaces. This has consequences will help to reduce the negative impacts of the pandemic on
for both the adults directly affected by these changing families. If the economic and public health crisis continues
conditions, as well as for the children who are dealing with at its current pace, many American families will require
enormous challenges and then interacting with their parents such assistance, including a disproportionate share of Black
within this new reality. Going forward, the disproportionate families.
7
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10
The Hamilton Project • BrookingsA DVISORY COUNCIL
STEPHANIE AARONSON TIMOTHY F. GEITHNER ROBERT D. REISCHAUER
Vice President and Director, Economic Studies President, Warburg Pincus Distinguished Institute Fellow &
Senior Fellow, Economic Studies, The Brookings Senior Counselor, The Hamilton Project President Emeritus
Institution Urban Institute
JOHN GRAY
GEORGE A. AKERLOF President & Chief Operating Officer NANCY L. ROSE
University Professor Blackstone Charles P. Kindleberger Professor of Applied
Georgetown University Economics, MIT Department of Economics
ROBERT GREENSTEIN
ROGER C. ALTMAN Founder & President DAVID M. RUBENSTEIN
Founder & Senior Chairman Center on Budget and Policy Priorities Co-Founder & Co-Executive Chairman
Evercore The Carlyle Group
MICHAEL GREENSTONE
KAREN L. ANDERSON Milton Friedman Professor in Economics & the ROBERT E. RUBIN
Senior Director of Policy & Communications College Former U.S. Treasury Secretary;
Becker Friedman Institute for Director of the Becker Friedman Institute for Co-Chair Emeritus
Research in Economics Research in Economics Council on Foreign Relations
The University of Chicago Director of the Energy Policy Institute
University of Chicago LESLIE B. SAMUELS
ALAN S. BLINDER Senior Counsel
Gordon S. Rentschler Memorial Professor of GLENN H. HUTCHINS Cleary Gottlieb Steen & Hamilton LLP
Economics & Public Affairs, Co-founder, North Island;
Princeton University; Co-founder, Silver Lake SHERYL SANDBERG
Visiting Senior Fellow, Chief Operating Officer, Facebook
The Brookings Institution. JAMES A. JOHNSON
Chairman; Johnson Capital Partners DIANE WHITMORE SCHANZENBACH
STEVEN A. DENNING Margaret Walker Alexander Professor
Chairman, General Atlantic LAWRENCE F. KATZ Director
Elisabeth Allison Professor of Economics The Institute for Policy Research
JOHN M. DEUTCH Harvard University Northwestern University;
Institute Professor Nonresident Senior Fellow
Massachusetts Institute of Technology MELISSA S. KEARNEY The Brookings Institution
Neil Moskowitz Professor of Economics
CHRISTOPHER EDLEY, JR. University of Maryland; STEPHEN SCHERR
Co-Founder and President Emeritus Nonresident Senior Fellow Chief Executive Officer
The Opportunity Institute The Brookings Institution Goldman Sachs Bank USA
BLAIR W. EFFRON LILI LYNTON RALPH L. SCHLOSSTEIN
Partner Founding Partner President & Chief Executive Officer, Evercore
Centerview Partners LLC Boulud Restaurant Group
ERIC SCHMIDT
DOUGLAS W. ELMENDORF HOWARD S. MARKS Technical Advisor, Alphabet Inc.
Dean & Don K. Price Professor Co-Chairman
of Public Policy Oaktree Capital Management, L.P. ERIC SCHWARTZ
Harvard Kennedy School Chairman & CEO, 76 West Holdings
ERIC MINDICH
JUDY FEDER Founder JAY SHAMBAUGH
Professor & Former Dean Everblue Management Professor of Economics and International Affairs,
McCourt School of Public Policy Elliott School of International Affairs at The
Georgetown University SUZANNE NORA JOHNSON George Washington University;
Former Vice Chairman Nonresident Senior Fellow
JASON FURMAN Goldman Sachs Group, Inc. The Brookings Institution
Professor of the Practice of Co-Chair
Economic Policy The Brookings Institution THOMAS F. STEYER
Harvard University Business Leader & Philanthropist
Senior Fellow PETER ORSZAG
Peterson Institute for International Economics; CEO, Financial Advisory MICHAEL R. STRAIN
Senior Counselor Lazard Freres & Co LLC Director of Economy Poliyc Studies and
The Hamilton Project Arthur F. Burns Scholar in Political Economy
RICHARD PERRY American Enterprise Institute
MARK T. GALLOGLY Managing Partner & Chief Executive Officer
Cofounder & Managing Principal Perry Capital LAWRENCE H. SUMMERS
Centerbridge Partners, L.P. Charles W. Eliot University Professor
PENNY PRITZKER Harvard University
TED GAYER Chairman & Founder, PSP Partners
Executive Vice President 38th Secretary of Commerce LAURA D’ANDREA TYSON
Senior Fellow, Economic Studies Distinguished Professor fo the Graduate School
The Brookings Institution MEEGHAN PRUNTY University of California, Berkeley
Managing Director, Blue Meridian Partners
Edna McConnell Clark Foundation
WENDY EDELBERG
Director
11
The Hamilton Project • BrookingsFIGURE 1.
Median Family Income and Net Worth in 2018, by Race
180
160
140
Thousands of 2018 dollars
120
100
80
60
Income
40
Net worth
20
0
Black White All households
Source: Current Population Survey Annual Social and Economic Supplement (ASEC) 2019; Survey of Consumer Finances (SCF) 2016; authors’ calculations.
Note: Income data are from the 2019 ASEC, which measures income in 2018. Net worth data are from the 2016 SCF, adjusted for inflation to 2018 dollars.
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