Economic Mobility of Black and White Families

The American Dream that one can rise up from humble beginnings and achieve a comfortable middle-class living, if not attain great wealth, transcends racial lines. But is it a reality for black and white families alike?

This report reviews overall income trends based on Census Bureau data and provides an intergenerational economic mobility analysis based on a longitudinal data set that allows a direct match of the family income of parents in the late 1960s to their children's family income in the late 1990s to early 2000s.

In brief, the report finds a significant racial gap in mobility. Trends show that median family incomes have risen for both black and white families but less so for black families. Moreover, the intergenerational analysis reveals a significant difference in the extent to which parents are able to pass their economic advantages onto their children. Whereas children of white middle-income parents tend to exceed their parents in income, a majority of black children of middle-income parents fall below their parents in income and economic status.

Supporting Assets

Figure 1: Median Personal Income of White and Black Men and Women Ages 30-39 (2004 Dollars)
Figure 2: Median Family Income of White and Black Adults, Ages 30-39 (2004 Dollars)
Figure 3: Family Compostion of White and Black Adults, Ages 30-39
Figure 4: Percent of Children with Family Income above their Parents' Family Income, by Race
Figure 5: Children's Income, by Race, Compared to Parental Income and Generational Average (2006 Dollars)
Figure 6: Chances of Getting Ahead or Falling Behind in Income Ranking, by Parental Income and Race
Table 1: Parents' Income of White and Black Children in PSID Sample

Download the complete Economic Mobility of Black and White Families Report here.

Download the complete Economic Mobility of Black and White Families Executive Summary here.

Report Assets