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Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life

Publication ,  Journal Article
Brown, TH
Published in: Race and Social Problems
March 1, 2016

The primary aim of this study is to examine whether racial/ethnic inequality in wealth dissipates or increases between middle and late life, and by how much. To address this aim, this study draws on critical race and life course perspectives as well as 10 waves of panel data from the Health and Retirement Study and growth curve models to understand racial/ethnic inequality in wealth trajectories among whites, blacks, and Mexican Americans (N = 8337). Findings show that, by midlife, significant inequalities in net worth emerge between whites and their black and Mexican American counterparts. On average, white households have amassed a net worth of $105k by midlife, compared to less than $5k and $39k among black and Mexican American families, respectively. Moreover, whites experience much more rapid rates of wealth accumulation during their 50s and 60s than their minority counterparts, resulting in increasing wealth disparities with age, consistent with a process of cumulative disadvantage. At the peak of their wealth trajectory (at age 66), whites have approximately $245k more than blacks and $219k more than Mexican Americans. A wide range of socioeconomic, behavioral, and health factors account for a portion, but not all, of racial/ethnic inequality in wealth, suggesting that unobserved factors such as parental wealth, segregation, and discrimination may play a role in the production and maintenance of wealth inequality.

Duke Scholars

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Published In

Race and Social Problems

DOI

EISSN

1867-1756

ISSN

1867-1748

Publication Date

March 1, 2016

Volume

8

Issue

1

Start / End Page

29 / 41
 

Citation

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Chicago
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Brown, T. H. (2016). Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life. Race and Social Problems, 8(1), 29–41. https://doi.org/10.1007/s12552-016-9160-2
Brown, T. H. “Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life.” Race and Social Problems 8, no. 1 (March 1, 2016): 29–41. https://doi.org/10.1007/s12552-016-9160-2.
Brown TH. Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life. Race and Social Problems. 2016 Mar 1;8(1):29–41.
Brown, T. H. “Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life.” Race and Social Problems, vol. 8, no. 1, Mar. 2016, pp. 29–41. Scopus, doi:10.1007/s12552-016-9160-2.
Brown TH. Diverging Fortunes: Racial/Ethnic Inequality in Wealth Trajectories in Middle and Late Life. Race and Social Problems. 2016 Mar 1;8(1):29–41.
Journal cover image

Published In

Race and Social Problems

DOI

EISSN

1867-1756

ISSN

1867-1748

Publication Date

March 1, 2016

Volume

8

Issue

1

Start / End Page

29 / 41