Study Compares Net Worth of Black, Hispanic and White Households

An analysis of government data revealed the wealth gapbetween whites and African-Americans and Hispanics increased by thewidest amount in recent years.

 

In a studyreleased today by the PewHispanicCenter,researchers found in 2002, the median net worth of African-Americanhouseholds was $5,988 and $7,932 for Hispanics. The median networth for African-American households is less than 10 percent ofwhites, who earn a median net worth of $88,651.

Net worthrefers to the values for items including a home, car, checking andsavings accounts, and stocks with debt subtracted.

Afterfactoring in inflation, between 1996 and 2002, net worth forwhite and Hispanic households increased 17 and 14 percentrespectively. African-Americans suffered a 16 percentdecrease, which can be calculated as approximately$6,000.

The center,which analyzed U. S. Census data, blamed the 2001 recession and thelazy recovery for the economic status of the largestminorities. Between 1999 and 2001, net worthof African-American and Hispanic households fell 27 percent,while those of whites rose two percent.

Additionally,in 2002, median net worth for all U.S. householdsincreased 12 percent since 1996 to $59,700.