Most studies of the persistent gap in wealth between whites and blacks have investigated the large gap in income earned by the two groups. Those studies generally concluded that the wealth gap was “too big” to be explained by differences in income. We study the issue using a different approach, capturing the dynamics of wealth accumulation over time. We find that the income gap is the primary driver behind the wealth gap and that it is large enough to explain the persistent difference in wealth accumulation. The key policy implication of our work is that policies designed to speed the closing of the racial wealth gap would do well to focus on closing the racial income gap.

Data and code accompanying "The Racial Wealth Gap and the Role of Firm Ownership"This paper develops an overlapping generations model that isolates the impact of the U.S. racial wealth gap in 1962 on the long-run dynamics of wealth. The model predicts that one component of the initial gap, firm ownership, coupled with the intergenerational transfer of that ownership, results in a permanent wealth gap independent of other dimensions of inequality. This implies that even if all discrimination against black Americans had ceased upon the end of Jim Crow, the wealth gap would have persisted without a reparations policy addressing the fact that the initial firm ownership gap arose in the first place.

In the first quarter of 2025, almost ********** of the total wealth in the United States was owned by the top 10 percent of earners. In comparison, the lowest ** percent of earners only owned *** percent of the total wealth. Income inequality in the U.S. Despite the idea that the United States is a country where hard work and pulling yourself up by your bootstraps will inevitably lead to success, this is often not the case. In 2024, *** percent of U.S. households had an annual income under 15,000 U.S. dollars. With such a small percentage of people in the United States owning such a vast majority of the country’s wealth, the gap between the rich and poor in America remains stark. The top one percent The United States was the country with the most billionaires in the world in 2025. Elon Musk, with a net worth of *** billion U.S. dollars, was among the richest people in the United States in 2025. Over the past 50 years, the CEO-to-worker compensation ratio has exploded, causing the gap between rich and poor to grow, with some economists theorizing that this gap is the largest it has been since right before the Great Depression.

In 2024 the median annual income of Asian households in the United States was 121,700 U.S. dollars. They were followed by White households, who's median earnings were 92,530 U.S. dollars. Furthermore, Black Americans and American Indian and Alaska Native families had the lowest household incomes. That year, median income among all U.S. household rose to 83,730 U.S. dollars.

In 2024, about 44.7 percent of White households in the United States had an annual median income of over 100,000 U.S. dollars. By comparison, only 26.8 percent of Black households were in this income group. Asian Americans, on the other hand, had the highest median income per household that year.

PSID data extract for computing active saving rates of Black and white Americans during 1984-2019.

Graph and download economic data for Net Change in Total Assets by Race: White, Asian, and All Other Races, Not Including Black or African American (CXUCHGASSETLB0902M) from 1984 to 2023 about change, asian, white, Net, assets, and USA.

Some Black households live in neighborhoods with lower incomes, as well as higher unemployment rates and lower educational attainment, than their own incomes might suggest, and this may impede their economic mobility. We investigate reasons for the neighborhood sorting patterns we observe and find that differences in financial factors such as income, wealth, or housing costs between Black and white households do not explain racial distributions across neighborhoods. Our findings suggest other factors are at work, including discrimination in the housing market, ongoing racial hostility, or preferences by Black households for the strength of social networks or other neighborhood amenities that some lower-socioeconomic locations provide.

A growing body of research documents the importance of wealth and the racial wealth gap in perpetuating inequality across generations. We add to this literature by examining the impact of wealth on child income. Our two stage least squares regressions reveal that grandparental and parental wealth have an important effect on the younger generation’s stock (first stage results), which in turn affects the younger generation’s household income (second stage results). We further explore the relationship between income and wealth by decomposing the child’s income by race. We find that the intergroup disparity in income is mainly attributable to differences in family background. These findings indicate that wealth is an important source of income inequality.

In 2024, **** percent of Black people living in the United States were living below the poverty line, compared to *** percent of white people. That year, the overall poverty rate in the U.S. across all races and ethnicities was **** percent. Poverty in the United States The poverty threshold for a single person in the United States was measured at an annual income of ****** U.S. dollars in 2023. Among families of four, the poverty line increases to ****** U.S. dollars a year. Women and children are more likely to suffer from poverty. This is due to the fact that women are more likely than men to stay at home, to care for children. Furthermore, the gender-based wage gap impacts women's earning potential. Poverty data Despite being one of the wealthiest nations in the world, the United States has some of the highest poverty rates among OECD countries. While, the United States poverty rate has fluctuated since 1990, it has trended downwards since 2014. Similarly, the average median household income in the U.S. has mostly increased over the past decade, except for the covid-19 pandemic period. Among U.S. states, Louisiana had the highest poverty rate, which stood at some ** percent in 2024.

The statistic shows the distribution of U.S. millionaires in 2013, by race and ethnicity. As of 2013, about ** percent of U.S. millionaires were White/Caucasian.

Additional information on racial income inequality

The issue of racial inequality in regards to income and wealth has been a problem through the entirety of the history of the United States. The statistic above demonstrates how the percentage of millionaires that identify as Black/African Americans is disproportionate to the share of the population overall. While the disproportionate number of millionaires demonstrates an undesirable degree of income inequality it is at the bottom of the wealth ladder within American society that the issue is most pressing. The overrepresentation of African Americans in contrast to the population in unemployment statistics are cause for concern on the part of the government and society as a whole. In 2014, nearly ** percent of surveyed families who placed themselves in the income bracket of under *** thousand dollars identified as black.

The percentage of non-white female business owners perhaps demonstrates that barriers to wealth exist but are diminished in unison. As barriers to wealth generation are removed for women, similar barriers are also being broken to allow for greater equality in the economic opportunities offered across the population of the United States. A central issue for policy makers is the time delay associated with policies aimed at reversing these inequalities. This was reflected in the 2015 Democratic and Republican presidential primary campaigns. Despite many major candidates discussing the issue none put forward meaningful proposals to address the problem. Even Senator Bernie Sanders who made addressing income inequality the cornerstone failed to separate the issue from income inequality generally. However, the global attention gained by movements such as ‘Black Lives Matter’ shows issues of racial inequality are prominent in the discourse of sections of the wider population if not forming a cornerstone of the political discourse in the United States.

The data and programs replicating tables and figures from "Wealth of Two Nations: The U.S. Racial Wealth Gap, 1860-2020", by Derenoncourt, Kim, Kuhn, and Schularick are too large to host on the Harvard Dataverse. They are available for download here instead: https://hu.sharepoint.com/:f:/s/HarvardEconomicsDatasets/Eq4g3n5WstlBvdknSsAI_FYBVNFV2trgP1It-Wv0rb9G3w?e=axHfn0 They are also hosted by the authors on openICPSR: https://www.openicpsr.org/openicpsr/project/194203/version/V1/view Please see the ReadMe_DKKS_QJE_2023 file for additional details.

Inequality remains woven into America’s economic fabric, fuelling public debate and shaping politics. In 2024, the richest fifth of U.S. households captured more than half of national income, while the poorest secured a just 3.1 percent. This stark contrast highlights the concentration of wealth among high-income households. Measuring income inequality The Gini coefficient, a standard measure of income inequality, has steadily risen over the past three decades. In 1990, the Gini coefficient for households in the United States stood at 0.43, but by 2024 it had increased to 0.49. This upward trend indicates a growing gap between the rich and poor. Among state, the District of Columbia and New York exhibited the greatest income inequality. Utah, on the other hand, recorded the smallest wealth gap. Income inequality across demographics Income disparities are also drawn along ethnic and racial lines. In 2024, Asian households in the United States had the highest median annual income, followed by White households. Black Americans and American Indian and Alaska Native families had comparatively lower household incomes. The overall median income for U.S. households reached nearly 84,000 U.S. dollars that year. These figures highlight the persistent economic gaps among various racial and ethnic groups in America.

In 2024, just over 45 percent of American households had an annual income that was less than 75,000 U.S. dollars. On the other hand, some 16 percent had an annual income of 200,000 U.S. dollars or more. The median household income in the country reached almost 84,000 U.S. dollars in 2024. Income and wealth in the United States After the economic recession in 2009, income inequality in the U.S. is more prominent across many metropolitan areas. The Northeast region is regarded as one of the wealthiest in the country. Massachusetts, New Hampshire, and Maryland were among the states with the highest median household income in 2024. In terms of income by race and ethnicity, the average income of Asian households was highest, at over 120,000 U.S. dollars, while the median income among Black households was around half of that figure. What is the U.S. poverty threshold? The U.S. Census Bureau annually updates the poverty threshold based on the income of various household types. As of 2023, the threshold for a single-person household was 15,480 U.S. dollars. For a family of four, the poverty line increased to 31,200 U.S. dollars. There were an estimated 38.9 million people living in poverty across the United States in 2024, which reflects a poverty rate of 10.6 percent.

About this dataset

Context

The dataset presents the median household incomes over the past decade across various racial categories identified by the U.S. Census Bureau in Money Creek township. It portrays the median household income of the head of household across racial categories (excluding ethnicity) as identified by the Census Bureau. It also showcases the annual income trends, between 2013 and 2023, providing insights into the economic shifts within diverse racial communities.The dataset can be utilized to gain insights into income disparities and variations across racial categories, aiding in data analysis and decision-making..

Key observations

• White: In Money Creek township, the median household income for the households where the householder is White increased by $4,899(5.67%), between 2013 and 2023. The median household income, in 2023 inflation-adjusted dollars, was $86,351 in 2013 and $91,250 in 2023.
• Black or African American: Even though there is a population where the householder is Black or African American, there was no median household income reported by the U.S. Census Bureau for both 2013 and 2023.
• Refer to the research insights for more key observations on American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, Some other race and Two or more races (multiracial) households

Content

When available, the data consists of estimates from the U.S. Census Bureau American Community Survey (ACS) 2019-2023 5-Year Estimates.

Racial categories include:

• White
• Black or African American
• American Indian and Alaska Native
• Asian
• Native Hawaiian and Other Pacific Islander
• Some other race
• Two or more races (multiracial)

Variables / Data Columns

• Race of the head of household: This column presents the self-identified race of the household head, encompassing all relevant racial categories (excluding ethnicity) applicable in Money Creek township.
• 2010: 2010 median household income
• 2011: 2011 median household income
• 2012: 2012 median household income
• 2013: 2013 median household income
• 2014: 2014 median household income
• 2015: 2015 median household income
• 2016: 2016 median household income
• 2017: 2017 median household income
• 2018: 2018 median household income
• 2019: 2019 median household income
• 2020: 2020 median household income
• 2021: 2021 median household income
• 2022: 2022 median household income
• 2023: 2023 median household income
• Please note: All incomes have been adjusted for inflation and are presented in 2023-inflation-adjusted dollars.

Good to know

Margin of Error

Data in the dataset are based on the estimates and are subject to sampling variability and thus a margin of error. Neilsberg Research recommends using caution when presening these estimates in your research.

Custom data

If you do need custom data for any of your research project, report or presentation, you can contact our research staff at research@neilsberg.com for a feasibility of a custom tabulation on a fee-for-service basis.

Inspiration

Neilsberg Research Team curates, analyze and publishes demographics and economic data from a variety of public and proprietary sources, each of which often includes multiple surveys and programs. The large majority of Neilsberg Research aggregated datasets and insights is made available for free download at https://www.neilsberg.com/research/.

Recommended for further research

This dataset is a part of the main dataset for Money Creek township median household income by race. You can refer the same here

About this dataset

Context

The dataset presents the median household income across different racial categories in Austin. It portrays the median household income of the head of household across racial categories (excluding ethnicity) as identified by the Census Bureau. The dataset can be utilized to gain insights into economic disparities and trends and explore the variations in median houshold income for diverse racial categories.

Key observations

Based on our analysis of the distribution of Austin population by race & ethnicity, the population is predominantly White. This particular racial category constitutes the majority, accounting for 59.90% of the total residents in Austin. Notably, the median household income for White households is $98,608. Interestingly, despite the White population being the most populous, it is worth noting that Asian households actually reports the highest median household income, with a median income of $119,954. This reveals that, while Whites may be the most numerous in Austin, Asian households experience greater economic prosperity in terms of median household income.

Content

When available, the data consists of estimates from the U.S. Census Bureau American Community Survey (ACS) 2019-2023 5-Year Estimates.

Racial categories include:

• White
• Black or African American
• American Indian and Alaska Native
• Asian
• Native Hawaiian and Other Pacific Islander
• Some other race
• Two or more races (multiracial)

Variables / Data Columns

• Race of the head of household: This column presents the self-identified race of the household head, encompassing all relevant racial categories (excluding ethnicity) applicable in Austin.
• Median household income: Median household income, adjusting for inflation, presented in 2023-inflation-adjusted dollars

Good to know

Margin of Error

Data in the dataset are based on the estimates and are subject to sampling variability and thus a margin of error. Neilsberg Research recommends using caution when presening these estimates in your research.

Custom data

If you do need custom data for any of your research project, report or presentation, you can contact our research staff at research@neilsberg.com for a feasibility of a custom tabulation on a fee-for-service basis.

Inspiration

Neilsberg Research Team curates, analyze and publishes demographics and economic data from a variety of public and proprietary sources, each of which often includes multiple surveys and programs. The large majority of Neilsberg Research aggregated datasets and insights is made available for free download at https://www.neilsberg.com/research/.

Recommended for further research

This dataset is a part of the main dataset for Austin median household income by race. You can refer the same here

About this dataset

Context

The dataset presents the median household income across different racial categories in Money Creek township. It portrays the median household income of the head of household across racial categories (excluding ethnicity) as identified by the Census Bureau. The dataset can be utilized to gain insights into economic disparities and trends and explore the variations in median houshold income for diverse racial categories.

Key observations

Based on our analysis of the distribution of Money Creek township population by race & ethnicity, the population is predominantly White. This particular racial category constitutes the majority, accounting for 97.65% of the total residents in Money Creek township. Notably, the median household income for White households is $91,250. Interestingly, White is both the largest group and the one with the highest median household income, which stands at $91,250.

Content

When available, the data consists of estimates from the U.S. Census Bureau American Community Survey (ACS) 2019-2023 5-Year Estimates.

Racial categories include:

• White
• Black or African American
• American Indian and Alaska Native
• Asian
• Native Hawaiian and Other Pacific Islander
• Some other race
• Two or more races (multiracial)

Variables / Data Columns

• Race of the head of household: This column presents the self-identified race of the household head, encompassing all relevant racial categories (excluding ethnicity) applicable in Money Creek township.
• Median household income: Median household income, adjusting for inflation, presented in 2023-inflation-adjusted dollars

Good to know

Margin of Error

Data in the dataset are based on the estimates and are subject to sampling variability and thus a margin of error. Neilsberg Research recommends using caution when presening these estimates in your research.

Custom data

If you do need custom data for any of your research project, report or presentation, you can contact our research staff at research@neilsberg.com for a feasibility of a custom tabulation on a fee-for-service basis.

Inspiration

Neilsberg Research Team curates, analyze and publishes demographics and economic data from a variety of public and proprietary sources, each of which often includes multiple surveys and programs. The large majority of Neilsberg Research aggregated datasets and insights is made available for free download at https://www.neilsberg.com/research/.

Recommended for further research

This dataset is a part of the main dataset for Money Creek township median household income by race. You can refer the same here

Graph and download economic data for Income Gini Ratio for Households by Race of Householder, All Races (GINIALLRH) from 1967 to 2024 about gini, households, income, and USA.

In 2023, the mean income of Black Bachelor's degree holders was ****** U.S. dollars, compared to ****** U.S. dollars for White Americans with a Bachelor's degree.

Replication data and code for Ellora Derenoncourt, Chi Hyun Kim, Moritz Kuhn, Moritz Schularick, Wealth of Two Nations: The U.S. Racial Wealth Gap, 1860–2020, The Quarterly Journal of Economics, 2023;, qjad044, https://doi.org/10.1093/qje/qjad044