About one-fourth of the U.S. is accumulating wealth, while the remaining three-fourths are not. And research is showing that race, education and age increasingly determine whether someone is a “thriver” or a “struggler.”
In this video, researchers Ray Boshara, William Emmons and Bryan Noeth—all representing the St. Louis Fed’s Center for Household Financial Stability—discuss their research on how a family’s race or ethnicity is related to its financial attainment.
Among the findings, they noted that black and Hispanic families earned median incomes that were about 40 percent less than those of white families. Asian families, on the other hand, have experienced faster growth in median incomes than white families and now have the highest median incomes among the groups studied.
Regarding wealth, Asian and white families have more liquid balance sheets on average than black and Hispanic families. Liquidity (or the ability to quickly access the assets) helps buffer families against financial shocks.
On the Economy
Get notified when new content is available on our On the Economy blog.
The On the Economy blog recently ranked in the top 20 on Feedspot’s list of top bank blogs.
About the Blog
The St. Louis Fed On the Economy blog features relevant commentary, analysis, research and data from our economists and other St. Louis Fed experts.
Views expressed are not necessarily those of the Federal Reserve Bank of St. Louis or of the Federal Reserve System.