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BLACK‐WHITE WEALTH INEQUALITY: IS INHERITANCE THE REASON?
Author(s) -
MENCHIK PAUL L.,
JIANAKOPLOS NANCY AMMON
Publication year - 1997
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1997.tb01920.x
Subject(s) - receipt , white (mutation) , inheritance (genetic algorithm) , economics , inequality , demographic economics , population , race (biology) , demography , sociology , biology , gender studies , mathematical analysis , biochemistry , mathematics , accounting , gene
Racial differences in the receipt of financial inheritances he& to explain why the average difference in wealth between black and white households is larger than the average difference in income. Using data from a panel of prime‐aged males and from a representative survey of the U.S. population, we document the greater likelihood of white households receiving an inheritance than black households. Controlling for other factors which contribute to racial differences in wealth, we estimate that financial inheritances may account for between 10% and 20% of the average difference in black‐white household wealth.