The study followed a group of families for 23 years (from 1984 to 2007) and found that while the net worth of White families went from $22,000 to $100,000, Black families lost their assets causing their net worth to only grow from from $2,000 to $5,000. Even with higher-earning African-American families, the median value of financial assets was still far less than high-earning White families: $18,000, compared to $240,000.
Should we be surprised? Maybe not if we look at how much discrimination in credit, jobs and housing affect families. The study found that when it comes to housing, African-American families were twice as likely to be given high-cost mortgages than Whites. Added to that the fact that the deregulation of the lending market opened the gates to predatory lending, payday lending and cash-checking stores in low-income neighborhoods. As a result, more African-Americans rely on high-cost debt credit to survive. -Essence
“Even when African-Americans do everything right — get an education and work hard at well-paying jobs — they cannot achieve the wealth of their White peers in the workforce, and that translates into very different life chances,” said Thomas Shapiro, co-author of the study.