Home » Posts tagged 'Race'
Tag Archives: Race
Intergenerational Economic Transfers and Wealth Inequality in the United States
by Parinay Gupta
Abstract
Using longitudinal data from Panel Study of Income Dynamics (PSID) from 2007-2021, this
paper investigates the role of economic transfers (inheritances and gifts) in asset
accumulation processes of US households, in both short-term and long-term. Analysis is
done through dimensions of race, wealth quartile, and age. Examining quartiles reveals
significant wealth disparities, mirrored in income and education levels. Racially, White
households consistently hold higher wealth, income, and educational levels compared to
Black households, indicating systematic racial disparities. Multivariate analysis uncovers
relationships between socio-economic factors and wealth. Past wealth positively influences
future accumulation, except for the lowest quartile. Labor income negatively impacts wealth,
particularly in lowest quartile, potentially indicating poverty traps and dissaving, while asset
income positively affects quartiles except the lowest, in both short-term and long-term. Total
expenditure initially reduces wealth but reverses in quartiles except the lowest in both time
frames. Race is significantly associated with wealth, with young Black households
consistently disadvantaged, though this reverses for the wealthiest quartile and in longerterm.
Age correlates positively with wealth. Transfers’ (inheritances and gifts) impact varies
across quartiles, showing diminishing returns and switching signs as wealth quartile
increases, indicating differential returns for upper quartiles. Noteworthy is the positive
association between transfers received 8-10 years ago and current wealth, irrespective of age
and wealth quartile, highlighting their significant long-term role in wealth accumulation.
Prof. William Darity, Faculty Advisor
Prof. Michelle Connolly, Faculty Advisor
JEL Classification Numbers: D14, D31, J15
The Role of Income in Environmental Justice: A National Analysis of Race, Housing Markets, and Air Pollution
By Christopher Brown
Historically, evidence has shown that minority populations in the United States suffer a disproportionate burden of pollution compared to whites. This study examines whether this burden could be the result of income disparities between whites and minorities, acting through the housing market. We look at 324 Metropolitan Statistical Areas (MSA’s) in the United States as defined by the Economic and Social Research Institute. Using demographic data from the 2000 Decennial Census and pollution data from the 1999 national Air Toxic Assessments, we compare the race-income correlation in each MSA for four races (white, black, Latino, and Asian) with the race-income.
JEL Codes: Q53, Q56 | Tagged: Environmental Justice, Income, Market Dynamics, Pollution, Race
