A new study has found that the income gap between white and Black young adults was narrower for millennials compared to Generation X. The study, conducted by researchers at Harvard University and the U.S. Census Bureau, showed that by age 27, Black Americans born in 1978 to poor parents earned almost $13,000 less annually than white Americans born to poor parents. However, this gap had narrowed to about $9,500 for those born in 1992. The shrinking gap was attributed to greater income mobility for poor Black children, with drops in mobility for low-income white children during the same time period. The study highlighted the importance of employment rates in the communities where individuals lived as children in influencing income mobility.
The study also revealed that the class gap widened for white people between the generations of Gen X and millennials. White Americans born to poor parents in 1978 earned about $10,300 less than those born to wealthy parents, while for those born in 1992, the class gap had increased to about $13,200. This was due to declining mobility for individuals born into low-income households and increasing mobility for those born into high-income households. There was little change in the class gap between Black Americans born into low-income and high-income households, as both groups experienced similar improvements in earnings.
The researchers also noted that the shrinking income gap between races and growing class gap among white people were reflected in educational attainment, standardized test scores, marriage rates, and mortality rates. Regional differences were also observed, with Black people from low-income families experiencing the greatest economic mobility in the southeast and industrial Midwest, while economic mobility declined the most for white people from low-income families in the Great Plains and parts of the coasts. The researchers suggested that policymakers could encourage mobility by investing in schools or youth mentorship programs during economic shocks, and by increasing connections between different racial and economic groups through changes in zoning restrictions or school district boundaries.
The study highlighted the importance of social communities in shaping opportunities for individuals, emphasizing the need to increase connections between communities to boost mobility. The researchers suggested that increasing opportunity could be achieved by investing in education, mentorship programs, and initiatives that bridge racial and economic divides. By understanding the factors that contribute to income and class gaps, policymakers can implement targeted interventions to promote greater economic mobility and reduce disparities between racial and socioeconomic groups. The findings of the study provide valuable insights into the complex dynamics of income and class disparities in American society and offer potential solutions to address these challenges.
