Racial inequality in the United States identifies the
social inequality
Social inequality occurs when resources in a given society are distributed unevenly, typically through norms of allocation, that engender specific patterns along lines of socially defined categories of persons. It posses and creates gender c ...
and advantages and disparities that affect different
races within the United States. These can also be seen as a result of historic oppression, inequality of inheritance, or
racism
Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one race over another. It may also mean prejudice, discrimination, or antagonism ...
and
prejudice
Prejudice can be an affective feeling towards a person based on their perceived group membership. The word is often used to refer to a preconceived (usually unfavourable) evaluation or classification of another person based on that person's per ...
, especially against
minority groups
The term 'minority group' has different usages depending on the context. According to its common usage, a minority group can simply be understood in terms of demographic sizes within a population: i.e. a group in society with the least number o ...
.
There are vast differences in wealth across racial groups in the United States. The
wealth gap
There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of we ...
between Caucasian and African-American families nearly tripled from $85,000 in 1984 to $236,500 in 2009. There are many causes, including years of home ownership, household income, unemployment, education, and inheritance.
Under
slavery in the United States
The legal institution of human chattel slavery, comprising the enslavement primarily of Africans and African Americans, was prevalent in the United States of America from its founding in 1776 until 1865, predominantly in the South. Sl ...
, African Americans were treated as property. After the American Civil War, Black
sharecroppers
Sharecropping is a legal arrangement with regard to agricultural land in which a landowner allows a tenant to use the land in return for a share of the crops produced on that land.
Sharecropping has a long history and there are a wide range ...
became trapped in debt. African Americans were rarely able to homestead. The
Freedman's Bank failed, losing many Black assets.
Exclusions from
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
disproportionately affected African Americans. Savings were spent for
retirement
Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload.
Many people choose to retire when they are elderly or incapable of doing their j ...
instead of handed down as
inheritance
Inheritance is the practice of receiving private property, Title (property), titles, debts, entitlements, Privilege (law), privileges, rights, and Law of obligations, obligations upon the death of an individual. The rules of inheritance differ ...
. African Americans are less likely to receive inheritance and more likely to aid poor family members.
The
Federal Housing Authority
The Federal Housing Administration (FHA), also known as the Office of Housing within the Department of Housing and Urban Development (HUD), is a United States government agency founded by President Franklin Delano Roosevelt, created in part by ...
and
Veteran's Administration
The United States Department of Veterans Affairs (VA) is a Cabinet-level executive branch department of the federal government charged with providing life-long healthcare services to eligible military veterans at the 170 VA medical centers and ...
shut out African Americans by giving loans to
suburbs
A suburb (more broadly suburban area) is an area within a metropolitan area, which may include commercial and mixed-use, that is primarily a residential area. A suburb can exist either as part of a larger city/urban area or as a separate ...
instead of
central cities.
Housing segregation
Housing segregation in the United States is the practice of denying African Americans and other minority groups equal access to housing through the process of misinformation, denial of realty and financing services, and racial steering. Housing ...
caused unequal living standards and poverty.
Public education
State schools (in England, Wales, Australia and New Zealand) or public schools (Scottish English and North American English) are generally primary or secondary schools that educate all students without charge. They are funded in whole or in pa ...
greatly relies on local
property taxes
A property tax or millage rate is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or net wealth, taxes on the change of ownership of property through inheri ...
, with racial inequality between white affluent suburbs and poor minorities in inner-cities.
Criminal records lead to employment and income struggles. Inability to make
bail
Bail is a set of pre-trial restrictions that are imposed on a suspect to ensure that they will not hamper the judicial process. Bail is the conditional release of a defendant with the promise to appear in court when required.
In some countries ...
and quality
counsel
A counsel or a counsellor at law is a person who gives advice and deals with various issues, particularly in legal matters. It is a title often used interchangeably with the title of ''lawyer''.
The word ''counsel'' can also mean advice given ...
are factors.
Racial segregation
Racial segregation is the systematic separation of people into race (human classification), racial or other Ethnicity, ethnic groups in daily life. Racial segregation can amount to the international crime of apartheid and a crimes against hum ...
and
racial profiling
Racial profiling or ethnic profiling is the act of suspecting, targeting or discriminating against a person on the basis of their ethnicity, religion or nationality, rather than on individual suspicion or available evidence. Racial profiling involv ...
lead to differences between races.
Definitions
In social science, racial inequality is typically defined as "imbalances in the distribution of power, economic resources, and opportunities."
Racial inequalities have manifested in American society in ways ranging from racial disparities in wealth, poverty rates, bankruptcy, housing patterns, educational opportunities, unemployment rates, and incarceration rates.
Current racial inequalities in the U.S. have their roots in over 300 years of cultural, economic, physical, legal, and political discrimination based on race.
Racial wealth gap
A study by the
Brandeis University
, mottoeng = "Truth even unto its innermost parts"
, established =
, type = Private research university
, accreditation = NECHE
, president = Ronald D. Liebowitz
, pro ...
Institute on Assets and Social Policy which followed the same sets of families for 25 years found that there are vast differences in wealth across racial groups in the United States. The wealth gap between Caucasian and African-American families studied nearly tripled, from $85,000 in 1984 to $236,500 in 2009. The study concluded that factors contributing to the inequality included years of home ownership (27%), household income (20%), education (5%), and familial financial support and/or inheritance (5%).
In an analysis of the American Opportunity Accounts Act, a bill to introduce
Baby Bonds
Baby bonds are a government policy in which every child receives at birth a publicly funded trust account, potentially with more generous funding for lower-income families. Economists William Darity and Darrick Hamilton proposed the policy in 20 ...
,
Morningstar reported that by 2019 white families had more than seven times the wealth of the average Black family, according to the
Survey of Consumer Finances The ''Survey of Consumer Finances'' (SCF) is a triennial statistical survey of the balance sheet, pension, income and other demographic characteristics of families in the United States; the survey also gathers information on the use of financial ins ...
.
Wealth
Wealth is the abundance of Value (economics), valuable financial assets or property, physical possessions which can be converted into a form that can be used for financial transaction, transactions. This includes the core meaning as held in the ...
can be defined as "the total value of things families own minus their debts." In contrast, income can be defined as, "earnings from work, interest and dividends, pensions, and transfer payments."
Wealth is an important factor in determining the quality of both individual and family life chances because it can be used as a tool to secure a desired quality of life or class status and enables individuals who possess it to pass their class status to their children. Family inheritance, which is passed down from generation to generation, helps with wealth accumulation.
Wealth can also serve as a safety net against fluctuations in income and poverty.
There is a large gap between the wealth of minority households and white households within the United States. The Pew Research Center's analysis of 2009 government data says the median wealth of white households is 20 times that of Black households and 18 times that of Hispanic households.
In 2009 the typical Black household had $5,677 in wealth, the typical Hispanic had $6,325, and the typical white household had $113,149.
[ Furthermore, 35% of African American and 31% of Hispanic households had zero or negative net worth in 2009 compared to 15% of white households.][ While in 2005 median Asian household wealth was greater than white households at $168,103, by 2009 that changed when their net worth fell 54% to $78,066, partially due to the arrival of new Asian immigrants since 2004; not including newly arrived immigrants, Asian net wealth only dropped 31%.][ As shown on "EURweb – Electronic Urban Report"] According to the Federal Reserve Survey of Consumer Finances, of the 14 million Black households, only 5% have more than $350,000 in net worth while nearly 30% of white families have more than this amount. Less than 1% of Black families have over a million in net assets. while nearly 10% of white households, totaling over 8 million families have more than 1.3 million in net worth. According to the Federal Reserve of Cleveland the wealth gap between white and Black Americans has remained roughly the same since 1962, when the average white family had seven times the wealth of the average Black family.
Lusardi states that African Americans and Hispanics are more likely to face means-tested programs that discourage asset possession due to higher poverty
Poverty is the state of having few material possessions or little income. Poverty can have diverse social, economic, and political causes and effects. When evaluating poverty in ...
rates. One-fourth of African Americans and Hispanics approach retirement with less than $1,000 net worth (without considering pensions and Social Security). Lower financial literacy is correlated with poor savings and adjustment behavior. Education is a strong predictor for wealth.[ One-fourth of African Americans and Hispanics that have less than a high school education have no wealth, but even with increased education, large differences in wealth remain.][
Conley believes that the cause of Black-White ]wealth inequality
The distribution of wealth is a comparison of the wealth of various members or groups in a society. It shows one aspect of economic inequality or economic heterogeneity.
The distribution of wealth differs from the income distribution in that ...
may be related to economic circumstances and poverty because the economic disadvantages of African Americans can be effective in harming efforts to accumulate wealth. However, there is a five times greater chance of downward mobility from the top quartile to the bottom quartile for African Americans than there is for white Americans; correspondingly, African Americans rise to the top quartile from the bottom quartile at half the rate of white Americans. Bowles and Gintis conclude from this information that successful African Americans do not transfer the factors for their success as effectively as white Americans do.
Other factors to consider in the recent widening of the minority wealth gap are the subprime mortgage crisis
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...
and financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
. The Pew Research Center found that plummeting house values were the main cause of the wealth change from 2005 to 2009. Hispanics were hit the hardest by the housing market meltdown possibly because a disproportionate share of Hispanics live in California, Florida, Nevada, and Arizona, which are among the states with the steepest declines in housing values.[ From 2005 to 2009 Hispanic homeowners' home equity declined by Half, from $99,983 to $49,145, with the homeownership rate decreasing by 4% to 47%.][ A 2015 ]Measure of America
Measure of America is a non-partisan, non-profit initiative of the Social Science Research Council in Brooklyn, New York. It conducts research and analysis primarily on human development data from the United States at the national, state, and coun ...
br>study
commissioned by the ACLU
The American Civil Liberties Union (ACLU) is a nonprofit organization founded in 1920 "to defend and preserve the individual rights and liberties guaranteed to every person in this country by the Constitution and laws of the United States". T ...
on the long-term consequences of discriminatory lending practices found that the financial crisis
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and man ...
will likely widen the Black-white wealth gap for the next generation.
The racial wealth gap essentially is composed of a private wealth management
Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...
industry maintaining Whiteness to act as a barrier to prevent those of color from equal financial development. This disparity has been debated, but never disputed due to its "very real" implications it has on African Americans. Data has shown that "among racial and ethnic groups, African Americans had the highest poverty rate at 27.4%”.
History
Before the 1808 abolition of the transatlantic slave trade, most Africans were forced to the United States as enslaved people, depriving them of all property, and in some cases family. In order to prevent rebellion or escape, the slave codes
The slave codes were laws relating to slavery and enslaved people, specifically regarding the Atlantic slave trade and chattel slavery in the Americas.
Most slave codes were concerned with the rights and duties of free people in regards to ensla ...
in some states banned education of slaves, especially teaching a slave to read or write. Redistribution of land
Land reform is a form of agrarian reform involving the changing of laws, regulations, or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution, generally of agricultural ...
from white owners to the people formerly forced to work it was attempted under the forty acres and a mule
Forty acres and a mule was part of Special Field Orders No. 15, a wartime order proclaimed by Union General William Tecumseh Sherman on January 16, 1865, during the American Civil War, to allot land to some freed families, in plots of land no la ...
policy of Union General William Tecumseh Sherman
William Tecumseh Sherman ( ; February 8, 1820February 14, 1891) was an American soldier, businessman, educator, and author. He served as a general in the Union Army during the American Civil War (1861–1865), achieving recognition for his com ...
. This was reversed by President Andrew Johnson
Andrew Johnson (December 29, 1808July 31, 1875) was the 17th president of the United States, serving from 1865 to 1869. He assumed the presidency as he was vice president at the time of the assassination of Abraham Lincoln. Johnson was a Dem ...
, a Southern Democrat who also opposed political rights for African Americans and protections against white violence in the South. Slavery continued in the border states until ratification of the Thirteenth Amendment to the United States Constitution
The Thirteenth Amendment (Amendment XIII) to the United States Constitution abolished slavery and involuntary servitude, except as punishment for a crime. The amendment was passed by the Senate on April 8, 1864, by the House of Representative ...
in December 1865.
The Freedmen's Bureau
The Bureau of Refugees, Freedmen, and Abandoned Lands, usually referred to as simply the Freedmen's Bureau, was an agency of early Reconstruction, assisting freedmen in the South. It was established on March 3, 1865, and operated briefly as a ...
was created as part of the War Department by President Abraham Lincoln
Abraham Lincoln ( ; February 12, 1809 – April 15, 1865) was an American lawyer, politician, and statesman who served as the 16th president of the United States from 1861 until his assassination in 1865. Lincoln led the nation thro ...
to provide shelter and supplies to freed slaves. It was supported by the Republican Congress over the veto of Andrew Johnson, but was soon de-funded and abandoned by a Democrat-controlled Congress in 1872.
While free African-Americans owned around $50 million by 1860, farm tenancy and sharecropping
Sharecropping is a legal arrangement with regard to agricultural land in which a landowner allows a tenant to use the land in return for a share of the crops produced on that land.
Sharecropping has a long history and there are a wide range ...
replaced slavery after the American Civil War
The American Civil War (April 12, 1861 – May 26, 1865; also known by other names) was a civil war in the United States. It was fought between the Union ("the North") and the Confederacy ("the South"), the latter formed by states th ...
because newly freed African American farmers did not own land or supplies and had to depend on the White Americans who rented the land and supplies out to them. At the same time, southern Blacks were trapped in debt and denied banking services while White citizens were given low interest loans to set up farms in the Midwest and Western United States. White homesteaders were able to go West and obtain unclaimed land through government grants, while the land grants and rights of African Americans were rarely enforced.[
After the Civil War the Freedman's Bank helped to foster wealth accumulation for African Americans. However, it failed in 1874, partially because of suspicious high-risk loans to White banks and the ]Panic of 1873
The Panic of 1873 was a financial crisis that triggered an economic depression in Europe and North America that lasted from 1873 to 1877 or 1879 in France and in Britain. In Britain, the Panic started two decades of stagnation known as the "Lon ...
. This lowered the support African Americans had to open businesses and acquire wealth. In addition, after the bank failed, taking the assets of many African Americans with it, many African Americans did not trust banks. There was also the threat of lynching to any African American who achieved success.[
In addition, when ]Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
was first created during the Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, it exempted agricultural and domestic workers, which disproportionately affected African Americans and Hispanics. Consequently, the savings of retired or disabled African Americans was spent during old age instead of handed down and households had to support poor elderly family members. The Homeowner's Loan Corporation that helped homeowners during the Great Depression gave African American neighborhoods the lowest rating, ensuring that they defaulted at greater rates than White Americans. The Federal Housing Authority
The Federal Housing Administration (FHA), also known as the Office of Housing within the Department of Housing and Urban Development (HUD), is a United States government agency founded by President Franklin Delano Roosevelt, created in part by ...
(FHA) and Veteran's Administration
The United States Department of Veterans Affairs (VA) is a Cabinet-level executive branch department of the federal government charged with providing life-long healthcare services to eligible military veterans at the 170 VA medical centers and ...
(VA) shut out African Americans by giving loans to suburbs instead of central cities after they were first founded.[
]
Inheritance and parental financial assistance
Bowman states that "in the United States, the most significant aspect of multigenerational wealth distribution comes in the forms of gifts and inheritances." However, the multigenerational absence of wealth and asset attainment for African Americans makes it almost impossible for them to make significant contributions of wealth to the next generation. Data shows that financial inheritances could account for 10 to 20 percent of the difference between African American and White American household wealth.
Using the Health and Retirement Study (HRS) of 1992 Avery and Rendall estimated that only around one-tenth of African Americans reported receiving inheritances or substantial inter vivo transfers ($5,000 or more) compared to one-third of white Americans. In addition, the 1989 Survey of Consumer Finances (SCF) reported that the mean and median values of those money transfers were significantly higher for white American households: the mean was $148,578 households compared to $85,598 for African American households and the median was $58,839 to $42,478. The large differences in wealth in the parent-generations were a dominant factor in prediction the differences between African American and white American prospective inheritances. Avery and Rendall used 1989 SCF data to discover that the mean value in 2002 of white Americans' inheritances was 5.46 times that of African Americans', compared to 3.65 that of current wealth. White Americans received a mean of $28,177 that accounted for 20.7% of their mean wealth while African Americans received a mean of $5,165 that accounted for 13.9% of their mean current wealth. Non-inherited wealth was more equally distributed than inherited wealth.[
Avery and Rendall found that family attributes favored white Americans when it came to factor influencing the amount of inheritances. African Americans were 7.3% less likely to have live parents, 24.5% more likely to have three or more siblings, and 30.6% less likely to be married or cohabiting (meaning there are two people who could gain inheritances to contribute to the household)][ Keister discovered that large family size has a negative effect on wealth accumulation. These negative effects are worse for the poor and African Americans and Hispanics are more likely to be poor and have large families. More children also decrease the amount of gifts parents can give and the inheritance they leave behind for the children.
Angel's research into inheritance showed that older Mexican American parents may give less financial assistance to their children than non-Hispanic White Americans because of their relatively high fertility rate so children have to compete for the available money. There are studies that indicate that elderly Hispanic parents of all backgrounds live with their adult children due to poverty and would choose to do otherwise, even if they had the resources to do so. African American and Latino families are less likely to financially aid adult children than non-Hispanic white families.][
]
Income effects
The racial wealth gap is visible in terms of dollar for dollar wage and wealth comparisons. For example, middle-class Blacks earn seventy cents for every dollar earned by similar middle-class whites. Race can be seen as the "strongest predictor" of one's wealth.
Krivo and Kaufman found that information supporting the fact that increases in income does not affect wealth as much for minorities as it does for white Americans. For example, a $10,000 increase in income for white Americans increases their home equity $17,770 while the same increase only increase the home equities for Asians by $9,500, Hispanics by $15,150, and African Americans by $15,900.
Financial decisions
Investments
Conley states that differences between African American and white American wealth begin because people with higher asset levels can take advantage of riskier investment instruments with higher rates of returns. Unstable income flows may lead to "cashing in" of assets or accumulation of debt over time, even if the time-averaged streams of income and savings are the same. African Americans may be less likely to invest in the stock market because they have a smaller parental head-start and safety net.[
Chong, Phillips and Phillips state that African Americans, Hispanics, and Asians invest less heavily in stocks than white Americans.] Hispanics and in some ways African Americans accumulate wealth slower than white Americans because of preference for near-term saving, favoring liquidity and low investment risk at the expense of higher yielding assets. These preferences may be due to low financial literacy leading to a lack of demand for investment services.[ According to Lusardi, even though the stock market increased in value in the 1990s, only 6-7% of African Americans and Hispanics held stocks, so they did not benefit as much from the value increase.][
]
Use of financial services
The Federal Deposit Insurance Corporation in 2009 found that 7.7% of United States households are unbanked
The unbanked are adults who do not have their own bank accounts. Along with the underbanked, they may rely on alternative financial services for their financial needs, where these are available.
Causes
Some reasons a person might not have a bank ...
. Minorities are more likely than white Americans to not have a banking account. 3.5% of Asians, 3.3% of white Americans, 21.7% of African Americans and 19.3% of Hispanics and 15.6% of remaining racial/ethnic categories do not have banking accounts.[
Lusardi's research revealed that education increases one's chances of having a banking account. A full high school education increases the chance of having a checking account by 15% compared to only an elementary education; having a parent with a high school education rather than only an elementary education increases one's chances of having a checking account by 2.8%. This difference in education level may explain the large proportion of "unbanked" Hispanics. The 2002 National Longitudinal Survey found that while only 3% of white Americans and 4% of African Americans had only an elementary education, close to 20% of Hispanics did and 43% of Hispanics had less than a high school education][ Ibarra and Rodriguez believe that another factor that influences the Hispanic use of banking accounts is credit. Latinos are also more likely than white Americans or African Americans to have no or a thin credit history: 22% of Latinos have no credit score in comparison to 4% of white Americans and 3% of African Americans.]
Not taking other variables into account, Chong, Phillips, and Phillips survey of zip codes found that minority neighborhoods don't have the same access to financial planning services as white neighborhoods. There is also client segregation by investable assets. More than 80% of financial advisors prefer that clients have at least $100,000 in investable assets and more than 50% have a minimum asset requirement of $500,000 or above. Because of this, financial planning is possibly beyond the reach of those with low income, which comprises a large portion of African-Americans and Hispanics.[
Fear of discrimination is another possible factor. Minorities may be distrustful of banks and lack of trust was commonly reported as why minorities, people with low education, and the poor chose not to have banking accounts.][ Evidence suggests that women of color are disproportionately likely to plan on using informal borrowing as their sole strategy for coping with an emergency expense, potentially due to lack of access to formal banking services.]
Aid to family members
Though African Americans who attend college get a similar boost in income to white peers, they tend not to have a similar increase in wealth, largely because they spend more money helping poor family members, including older relatives who in white families are instead more likely to help younger kin.
Health care
Black Americans face consistently worse health outcomes than white, Asian, and Hispanic Americans. Black women are 2½ times more likely to die of maternal causes than white women and this rate increases to 3 times when compared to Hispanic Americans. The infant mortality rate for Black Americans is 11 per 1,000 births which is higher than the US average of 5.7. There exists gaps in life expectancy between races with Black and Native Americans having the lowest life expectancies. The gap between Black and white Americans on average is four years; however, there is great variation between states and even on smaller levels. For example in Wisconsin this gap is six years, and in Washington, D.C., this gap is more than ten years. African American women have the highest rate of obesity or being overweight in the US and non-Hispanic Blacks are 1.3 times more likely to be obese than non-Hispanic Whites.
Poverty
There are large differences in poverty rates across racial groups. In 2009, the poverty rate across the nation was 9.9%. This data illustrates that Hispanics and Blacks experience disproportionately high percentages of poverty in comparison to non-Hispanics whites and Asians. In discussing poverty, it is important to distinguish between episodic poverty and chronic poverty.
Episodic poverty
The U.S. Census Bureau defines episodic poverty as living in poverty for less than 36 consecutive months. From the period between 2004 and 2006 the episodic poverty rate was 22.6% for non-Hispanic whites, 44.5% for Blacks, and 45.8% for Hispanics. Blacks and Hispanics experience rates of episodic poverty that are nearly double the rates of non-Hispanic whites.
Chronic poverty
The U.S. Census Bureau defines chronic poverty as living in poverty for 36 or more consecutive months. From the period between 2004 and 2006 the chronic poverty rate was 1.4% for non-Hispanic whites, 4.5% for Hispanics, and 8.4% for Blacks. Hispanics and Blacks experience much higher rates of chronic poverty when compared to non-Hispanic whites.
Length of poverty spell
The U.S. Census Bureau defines length of poverty spell as the number of months spent in poverty. The median length of poverty spells was 4 months for non-Hispanic whites, 5.9 months for Blacks, and 6.2 months for Hispanics. The length of time spent in poverty varies by race. Non-Hispanic whites experience the shortest length of poverty spells when compared to Blacks and Hispanics.
Housing segregation
Housing segregation in the United States is the practice of denying African American
African Americans (also referred to as Black Americans and Afro-Americans) are an ethnic group consisting of Americans with partial or total ancestry from sub-Saharan Africa. The term "African American" generally denotes descendants of ens ...
or other minority groups equal access to housing through the process of misinformation, denial of realty and financing services, and racial steering Racial steering refers to the practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. The term is used in the context of ''de facto'' residential segregation in the United S ...
. Housing policy in the United States has influenced housing segregation trends throughout history. Key legislation include the National Housing Act of 1934, the GI Bill, and the Fair Housing Act. Factors such as socioeconomic status, spatial assimilation, and immigration contribute to perpetuating housing segregation. The effects of housing segregation include relocation, unequal living standards, and poverty.[The Continuing Causes of Segregation]
. Massey, Douglas
Douglas Steven Massey (born October 5, 1952 in Olympia, Washington, United States) is an American sociologist. Massey is currently a professor of Sociology at the Princeton School of Public and International Affairs at Princeton University and i ...
, and Nancy Denton
Nancy Anne Denton is an American sociologist. She is a professor of sociology at the University at Albany, SUNY, where she Professor Emeritus. SUNY Albany, where Dr. Havidan Rodriguez (a noted Sociologist) is currently the president of the univers ...
.
American Apartheid: Segregation and the Making of the Underclass
'. Cambridge: Harvard University Press, 1993, . However, there have been initiatives to combat housing segregation, such as the Section 8 housing program.
Racial residential segregation
Residential segregation in the United States is the physical separation of two or more groups into different neighborhoods—a form of segregation that "sorts population groups into various neighborhood contexts and shapes the living environment a ...
doubled from 1880 to 1940. Southern urban areas were the most segregated. Segregation was highly correlated with lynchings of African-Americans. Segregation adversely affected both black and white homeownership rates, as well as caused higher crime rates. Areas with housing segregation had worse health outcomes for both whites and Blacks. Residential segregation accounts for a substantial share of the Black-white gap in birth weight
Birth weight is the body weight of a baby at its birth. The average birth weight in babies of European descent is , with the normative range between . On average, babies of South Asian and Chinese descent weigh about . As far as low birth weight ...
. Segregation reduced upward economic mobility.
White communities are more likely to have strict land use regulations (and whites are more likely to support those regulations). Strict land use regulations are an important driver of housing segregation along racial lines in the United States.
Education
In the United States, funding for public education relies greatly on local property taxes. Local property tax revenues may vary between different neighborhoods and school districts. This variance of property tax revenues amongst neighborhoods and school districts leads to inequality in education. This inequality manifests in the form of available school financial resources which provide educational opportunities, facilities, and programs to students. For every student enrolled, the average nonwhite school district receives $2,226 less than a white school district.
Returning to the concept of residential segregation, it is known that affluence and poverty have become both highly segregated and concentrated in relation to race and location. Residential segregation and poverty concentration is most markedly seen in the comparison between urban and suburban populations in which suburbs consist of majority white populations and inner-cities consist of majority minority populations. According to Barnhouse-Walters (2001), the concentration of poor minority populations in inner-cities and the concentration of affluent white populations in the suburbs, "is the main mechanism by which racial inequality in educational resources is reproduced."
In August 2020, the US Justice Department
A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a ...
argued that Yale University
Yale University is a private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the third-oldest institution of higher education in the United States and among the most prestigious in the wo ...
discriminated against Asian candidates on the basis of their race, a charge the university denied.
Unemployment rates
In 2016, the unemployment rate was 3.8% for Asians, 4.6% for non-Hispanic whites, 6.1% for Hispanics, and 9.0% for Blacks, all over the age of 16. In terms of unemployment, it can be seen that there are two-tiers: relatively low unemployment for Asians and whites, relatively high unemployment for Hispanics and Blacks.
Potential explanations
Several theories have been offered to explain the large racial gap in unemployment rates:
Segregation and job decentralization
This theory argues that the effects of racial segregation pushed Blacks and Hispanics into the central city during a time period in which jobs and opportunities moved to the suburbs. This led to geographic separation between minorities and job opportunities which was compounded by struggles to commute to jobs in the suburbs due to lack of means of transportation. This ultimately led to high unemployment rates among minorities.
White gains
This theory argues that the reason minority disadvantage exists is because the majority group is able to benefit from it. For example, in terms of the labor force, each job not taken by a Black person could be job that gets occupied by a white person. This theory is based on the view that the white population has the most to gain from the discrimination of minority groups. In areas where there are large minority groups, this view predicts high levels of discrimination to occur for the reason that white populations stand to gain the most in those situations.
Job skill differentials
This theory argues that the unemployment disparity can be attributed to lower rates of academic success among minority groups (especially Black Americans) leading to a lack of skills necessary for entering the modern work force. The author remains unclear why Black Americans have low academic success.
Other explanations
It is politically incorrect to assume that racial inequality is caused by differences in skills or preferences. The lack of open discussion leads to ethnic groups being treated equally. This means that diverse groups receive the same offers which have different advantages for different groups, which further increases inequality.
Crime rates and incarceration
In 2008, the prison population under federal and state correctional jurisdiction was over 1,610,446 prisoners. Of these prisoners, 20% were Hispanic (compared to 16.3% of the U.S. population that is Hispanic), 34% were white (compared to 63.7% of the U.S. population that is white), and 38% were Black (compared to 12.6% of the U.S. population that is Black). Additionally, Black males were imprisoned at a rate 6.5 times higher than that of their white male counterparts. According to a 2012 study by the U.S. Census Bureau, "over half the inmates incarcerated in our nation's jails is either Black or Hispanic." According to a report by the National Council of La Raza, research obstacles undermine the census of Latinos in prison, and "Latinos in the criminal justice system are seriously undercounted. The true extent of the overrepresentation of Latinos in the system probably is significantly greater than researchers have been able to document.
Consequences of a criminal record
After being released from prison, the consequences of having a criminal record are immense. Over 40 percent who are released will return to prison within the next few years. Those with criminal records who do not return to prison face significant struggles to find quality employment and income outcomes compared to those who do not have criminal records.
Those racially disparate employment consequences can arise from other forms of carceral contact, too, and they can have spillover effects on local communities. At the county level, for example, jail rather than prison incarceration has been found to significantly diminish local labor markets in areas with relatively high proportions of Black residents.
Potential causes
Poverty
A potential cause of such disproportionately high incarceration rates for Black Americans is that Black Americans are disproportionately poor. Conviction is a crucial part of the process that leads to either guilt or innocence. There are two important factors that play a role in this part of the process: the ability to make bail and the ability to access high-quality legal counsel. Due to the fact that both of these important factors cost money, it is unlikely that poor Black Americans are able to afford them and benefit from them. Sentencing is another crucial part of the process that determines how long individuals will remain incarcerated. Several sociological studies have found that poor offenders receive longer sentences for violent crimes and crimes involving drug use, unemployed offenders are more likely to be incarcerated than their employed counterparts, and then even with similar crimes and criminal records minorities were imprisoned more often than whites.
Racial profiling
Racial profiling is defined as "any police-initiated action that relies on the race, ethnicity, or national origin, rather than the behavior of an individual or information that leads the police to a particular individual who has been identified as being, or having been, engaged in criminal activity." Another potential cause for the disproportionately high incarceration rates of Blacks and Hispanics is that racial profiling occurs at higher rates for Blacks and Hispanics. Eduardo Bonilla-Silva states that racial profiling can perhaps explain the over representation of Blacks and Hispanics in U.S. prisons. According to Michael L. Birzer, professor of criminal justice at Wichita State University
Wichita State University (WSU) is a public research university in Wichita, Kansas, United States. It is governed by the Kansas Board of Regents. The university offers more than 60 undergraduate degree programs in more than 200 areas of study in ...
and director of its School of Community Affairs, "racial minorities, particularly African Americans, have had a long and troubled history of disparate treatment by United States Criminal Justice Authorities."[
]
Racial segregation
"Racial residential segregation is a fundamental cause of racial disparities in health". Racial segregation can result in decreased opportunities for minority groups in income, education, etc. While there are laws against racial segregation, study conducted by D. R. Williams and C. Collins focuses primarily on the impacts of racial segregation, which leads to differences between races.
Police brutality
Significant racial discrepancies have been reported in the United States involving police brutality. Police brutality in the United States is defined as "the unwarranted or excessive and often illegal use of force against civilians by U.S. police officers." It can come in the form of murder, assault, mayhem, or torture, as well as less physical means of violence including general harassment, verbal abuse, and intimidation. it has been argued that the origins of racial inequality by way of police brutality in America date to colonial times when slavery was legal and widespread. Due to fear of slave revolts, whites began to organize groups of vigilantes who would use force to keep slaves from rebelling against their owners or escaping. In 1929, the Illinois crime survey reported that although African-Americans only made up five percent of Illinois's population, they consisted of 30 percent of victims of police killings.
During the civil rights era, the existence of the racial disparities surrounding police brutality became more discussed. During peaceful protests for civil rights, some police would use tactics such as police dogs or fire hoses to control the protesters. In 1991, video footage was released of cab driver Rodney King
Rodney Glen King (April 2, 1965June 17, 2012) was an African American man who was a victim of police brutality. On March 3, 1991, he was beaten by Los Angeles Police Department (LAPD) officers during his arrest after a pursuit for driving whi ...
being hit over 50 times by multiple police with their batons. The police were later acquitted for their actions which resulted in the 1992 Los Angeles riots
The 1992 Los Angeles riots, sometimes called the 1992 Los Angeles uprising and the Los Angeles Race Riots, were a series of riots and civil disturbances that occurred in Los Angeles County, California, in April and May 1992. Unrest began in S ...
. Allegations of police brutality continue to plague American police. An alleged example of police brutality includes Philando Castile, a 32-year-old Black male who was pulled over for a broken taillight. After being told by officer Yanez, to take out his license and insurance, Castile told the officer he had a firearm and that he was reaching into his pocket to get his wallet. Seconds later he was shot and killed by Yanez, who claimed he believed Castile was pulling his gun out. Yanez was charged with manslaughter and acquitted at trial.
Black Americans are 2–3 times more likely to be killed in a police shooting than white Americans are killed and are more likely to be unarmed. A study done by Joshua Correll at the University of Chicago shows what is called "The police officers dilemma", by setting up a video game in which police are given scenarios involving both Black and white men holding either a gun or non-threatening objects such as cellphones. The study found that armed Black men were shot more frequently than armed white men and were also shot more quickly. The police would also sometimes mistakenly shoot the unarmed Black targets, while neglecting to shoot the armed white targets. Militarized police units are more often deployed in Black neighborhoods even after adjusting for crime rates.
A 2020 study by Cody Ross et ''et al.'' concluded that there was evidence of bias in police shootings of unarmed Blacks and that even when using crime as a benchmark "there is strong and statistically reliable evidence of anti-Black racial disparities in the killing of unarmed Americans by police". A 2019 study by Cesario et al. published in Social Psychological and Personality Science found that after adjusting for crime, there was "no systematic evidence of anti-Black disparities in fatal shootings, fatal shootings of unarmed citizens, or fatal shootings involving misidentification of harmless objects. A study by Harvard economist Roland Fryer
Roland Gerhard Fryer Jr. (born June 4, 1977) is an American economist and professor at Harvard University. Following a difficult childhood, Fryer earned an athletic scholarship to the University of Texas at Arlington, but once there chose to conc ...
found that for officer-involved shootings there were no racial disparities "in either the raw data or when contextual factors are taken into account". According to data from the Chicago Police Department police used more force against Black people than any other race despite the fact that they were less likely to resist arrest than whites. Around 20% of the population of Minneapolis
Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...
is Black but they are subjected to nearly 60% of total police use of force.
Color-blind racism
It is hypothesized by some scholars, such as Michelle Alexander
Michelle Alexander (born October 7, 1967) is an American writer and civil rights activist. She is best known for her 2010 book '' The New Jim Crow: Mass Incarceration in the Age of Colorblindness''. Since 2018, she has been an opinion columnist ...
, that in the since the Civil Rights Era, the United States has now switched to a new form of racism
Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one race over another. It may also mean prejudice, discrimination, or antagonism ...
known as color-blind
Color blindness or color vision deficiency (CVD) is the decreased ability to see color or differences in color. It can impair tasks such as selecting ripe fruit, choosing clothing, and reading traffic lights. Color blindness may make some aca ...
racism. Color-blind racism refers to "contemporary racial inequality as the outcome of nonracial dynamics."
The types of practices that take place under color blind racism are "subtle, institutional, and apparently nonracial." Those practices are not racially overt in nature such as racism under slavery, segregation, and Jim Crow laws
The Jim Crow laws were state and local laws enforcing racial segregation in the Southern United States. Other areas of the United States were affected by formal and informal policies of segregation as well, but many states outside the Sout ...
. Instead, color-blind racism flourishes on the idea that race is no longer an issue in the country and that there are non-racial explanations for the state of inequality. Eduardo Bonilla-Silva writes that there are four frames of color-blind racism that support that view:
# Abstract liberalism uses ideas associated with political liberalism
Liberalism is a political and moral philosophy based on the rights of the individual, liberty, consent of the governed, political equality and equality before the law."political rationalism, hostility to autocracy, cultural distaste for c ...
. This frame is based in liberal ideas such as equal opportunity, individualism, and choice. It uses these ideas as a basis to explain inequality.
# Naturalization explains racial inequality as a cause of natural occurrences. It claims that segregation is not the result of racial dynamics. Instead, it is the result of the naturally-occurring phenomena of individuals choosing likeness as their preference.
# Cultural racism explains racial inequality through culture. Under this frame, racial inequalities are described as the result of stereotypical behavior of minorities. Stereotypical behavior includes qualities such as laziness and teenage pregnancy.
# Minimization of racism attempts to minimize the factor of race as a major influence in affecting the life chances of minorities. It writes off instances and situations that could be perceived as discrimination to be hypersensitivity to the topic of race.
Natural disasters
When a disaster strikes—be it a hurricane, tornado, or fire—some people are inherently more prepared than others. "While all members of populations are affected by disasters, research findings show that racial and ethnic minorities are less likely to evacuate and more affected by disasters" than their Caucasian counterparts. "During Hurricane Katrina, the large number of people seeking safety in designated shelters were disproportionately Black. In addition, the mortality rate for Blacks was 1.7 to 4 times higher than that of whites for all people ≥ 18." After Hurricane Katrina, many African Americans felt abandoned by the United States Government. 66% of African Americans "said that 'the government's response to atrina
''Atrina'' is a cosmopolitan genus of bivalve molluscs belonging to the family Pinnidae.
A typical species is '' A. fragilis'', found in British waters. '' A. rigida'' ( Lightfoot, 1786) is found on the southeast coast of North America and in ...
would have been faster if most of the victims had been white. For a disproportionate share of the impoverished in New Orleans, many had, and continue to have, a difficult time preparing for storms. Factors such as, "cultural ignorance, ethnic insensitivity, racial isolation and racial bias in housing, information dissemination, and relief assistance" all greatly contribute to the disparities in disaster preparedness.
See also
* Civil rights movement
The civil rights movement was a nonviolent social and political movement and campaign from 1954 to 1968 in the United States to abolish legalized institutional Racial segregation in the United States, racial segregation, Racial discrimination ...
* Chinese Exclusion Act
The Chinese Exclusion Act was a United States federal law signed by President Chester A. Arthur on May 6, 1882, prohibiting all immigration of Chinese laborers for 10 years. The law excluded merchants, teachers, students, travelers, and diplom ...
* Glass ceiling
A glass ceiling is a metaphor usually applied to women, used to represent an invisible barrier that prevents a given demographic from rising beyond a certain level in a hierarchy.Federal Glass Ceiling Commission''Solid Investments: Making Full ...
* Gender inequality in the United States
Gender inequality in the United States has been diminishing throughout its history and significant advancements towards equality have been made beginning mostly in the early 1900s. However, despite this progress, gender inequality in the United S ...
* Immigration Act of 1924
The Immigration Act of 1924, or Johnson–Reed Act, including the Asian Exclusion Act and National Origins Act (), was a United States federal law that prevented immigration from Asia and set quotas on the number of immigrants from the Eastern ...
* Indian Appropriations Act
The Indian Appropriations Act is the name of several acts passed by the United States Congress. A considerable number of acts were passed under the same name throughout the 19th and early 20th centuries, but the most notable landmark acts cons ...
* Inequality in Hollywood
Inequality in Hollywood refers to the various forms of discrimination and social inequality in the American media industry. There are many branches of the media industry, such as news, television, film, music, agencies, studios, to name some of ...
* Japanese American internment
Japanese may refer to:
* Something from or related to Japan, an island country in East Asia
* Japanese language, spoken mainly in Japan
* Japanese people, the ethnic group that identifies with Japan through ancestry or culture
** Japanese diaspor ...
* Mexican Repatriation
The Mexican Repatriation ( es, link=no, Repatriación mexicana) was the repatriation and deportation of Mexicans and Mexican Americans to Mexico from the United States during the Great Depression between 1929 and 1939. Estimates of how many we ...
* Native Americans and reservation inequality
Native American reservation inequality underlies a range of societal issues that affect the lives of Native Americans in the United States, Native American populations residing on reservations in the United States. About one third of the Native ...
* ''The New Jim Crow
''The New Jim Crow: Mass Incarceration in the Age of Colorblindness'' is a book by Michelle Alexander, a civil rights litigator and legal scholar. The book discusses race-related issues specific to African-American males and mass incarceration in ...
''
* Operation Wetback
Operation Wetback was an immigration law enforcement initiative created by Joseph Swing, the Director of the United States Immigration and Naturalization Service (INS), in cooperation with the Mexican government. The program was implemented in ...
* Racial achievement gap in the United States
The racial achievement gap in the United States refers to disparities in educational achievement between differing ethnic/racial groups. It manifests itself in a variety of ways: African-American and Hispanic students are more likely to receive ...
* Racial segregation in the United States
In the United States, racial segregation is the systematic separation of facilities and services such as Housing in the United States, housing, Healthcare in the United States, healthcare, Education in the United States, education, Employment in ...
* Racial wage gap in the United States
In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Asian Americans have the highest median income, followed by
White Americans, Hispanic Americans, African Americans, and N ...
* Racism in the United States
Racism in the United States comprises negative attitudes and views on race or ethnicity which are related to each other, are held by various people and groups in the United States, and have been reflected in discriminatory laws, practices and ...
*Redlining
In the United States, redlining is a discriminatory practice in which services (financial and otherwise) are withheld from potential customers who reside in neighborhoods classified as "hazardous" to investment; these neighborhoods have signif ...
*Reparations for slavery in the United States
Reparations for slavery is the application of the concept of reparations to victims of slavery or their descendants. There are concepts for reparations in legal philosophy and reparations in transitional justice. In the US, reparations for sla ...
* Sociology of race and ethnic relations
The sociology of race and ethnic relations is the study of social, political, and economic relations between races and ethnicities at all levels of society. This area encompasses the study of systemic racism, like residential segregation and ...
*Tulsa race massacre
The Tulsa race massacre, also known as the Tulsa race riot or the Black Wall Street massacre, was a two-day-long massacre that took place between May 31 – June 1, 1921, when mobs of white residents, some of whom had been appointed as deput ...
* The Whiteness of Wealth
References
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{{Social issues in the United States
Economic inequality in the United States
Race in the United States
Social classes