Economic Mobility - Black and White Families

Black and White Families

Average income for both White and Black families has increased since the 1970s. However, average income for White families in their 30s has increased from $50,000 to $60,000 from 1975 to 2005, compared to an increase from $32,000 to $35,000 for Black families of the same age over the same period. So in addition to receiving a lower average income, its growth is also less for Black families (10% growth) than their White counterparts (19% growth). One way this can be explained is that even though marriage rates have declined for both races, Blacks are 25% less likely to be in a married couple. However, Blacks also have less economic mobility and are less likely to surpass their parents’ income or economic standing than Whites. Two of three White children born into families in the middle quintile have achieved a higher family income than their parents. Conversely, only one of three Black children born into families in the middle quintile has achieved a higher family income than their parents. On average, Black children whose parents were in the bottom or second quintile do exceed their parents’ income, but those whose parents were in the middle or fourth quintile actually have a lower income than their parents. This is a very large difference compared to Whites, who experience intergenerational income growth in every quintile except the highest. This shows that in addition to lower wages with less growth over time, it is less likely for Black families to experience upward economic mobility than it is for Whites.