View Research by Author - Sisi Zhang

Publications

Income inequality understates the size of the economic gap between whites and minorities in the United States. In 2010, whites on average had two times the income of blacks and Hispanics, but six times the wealth. Analyses of wealth accumulation over the life cycle show that the racial wealth gap grows sharply with age. Wealth isn't just money in the bank, it's insurance against tough times, tuition to get a better education and a better job, savings to retire on, and a springboard into the middle class.

Despite the Great Recession and slow recovery, the American dream of working hard, saving more, and becoming wealthier than one's parents holds true for many. Unless you're under 40. Stagnant wages, diminishing job opportunities, and lost home values may be painting a vastly different future for Gen X and Gen Y. Today's political discussions often focus on preserving the wealth and benefits of older Americans and the baby boomers. Often lost in this debate is attention to younger generations whose wealth losses, or lack of long-term gains, have been even greater.

Did the Great Recession hit poor neighborhoods especially hard? Surprisingly, between 2007 and 2009, residents in the poorest neighborhoods did not suffer worse losses in employment and wages than did other neighborhoods. Poor neighborhoods saw unusually high job losses among men but not among women. Because residents in poor neighborhoods had especially low homeownership rates, they were less likely to face big losses in home equity. Homeowners in poor neighborhoods were slightly less likely to sustain homeownership, but they weren’t locked out of jobs because of immobility. In fact, these homeowners fared better in the job market than renters.

How has family economic security, as measured by the net worth asset-poverty rate, changed since the onset of the Great Recession? Data from the 2007 and 2010 Survey of Consumer Finances show that one out of every five U.S. families (19.6 percent) was asset poor in 2010, up from 16.1 percent in 2007, which represents over 4 million additional asset-poor families in 2010. The Great Recession’s impact was widespread, the asset-poverty rate increased across the income spectrum, and increased for both white and minority families. Mid-aged families experienced relatively large increases in asset poverty.

This factsheet summarizes key findings from a study that analyzes variation in settlement costs using data from FHA-insured, 30-year fixed-rate loans in five metropolitan areas. Title charges varied widely, from a median of $1,867 in Broward County to $914 in Philadelphia. Even after controlling for metropolitan area and characteristics of homebuyers, houses, neighborhoods, and settlement agencies, more than one-half of the variation in title charges remains unexplained. Substantial differences in title charges between settlement agents within a market suggest that consumers may benefit by shopping for settlement services. Regulators may want to consider helping consumers make more informed choices.

Large differences in wealth holdings exist between white households and their African American and Hispanic counterparts. This factsheet summarizes key findings from a study that explored the impact of private transfers on racial and ethnic wealth gaps. It found that small cash transfers had little or no effect on wealth holdings, but in the case of African American households large inheritances or gifts explained about 12 percent of the difference in wealth between them and white households.

Title charges include title insurance premiums and charges for settling a loan. Title charges vary considerably from a median of $1,971 in California to $625 in North Dakota. This report analyzes variation in settlement costs using data from over 3,000 FHA-insured, 30-year fixed-rate home purchase loans in five metropolitan areas. Even after controlling for metropolitan area, various characteristics of homebuyers, houses, neighborhoods, and settlement agencies, more than one-half of the variation in title charges remains unexplained. Substantial differences in title charges between settlement agents within a market suggest that consumers would benefit by shopping for settlement services.

Is supporting homeownership still viable policy for low- and moderate-income families? Although middle-aged families are less likely to own homes than a decade ago and many recent purchasers are underwater, homeownership is still the primary saving vehicle for low- and moderate-income families, and longer-term homeowners generally managed to achieve net saving or gains despite the losses of the Great Recession. Nearly 90 percent of families that owned homes as of 1999 were still homeowners in 2011, and market conditions are increasingly favorable for homeownership. This suggests that losses incurred during the recent bust mask emerging opportunities and sensible housing policies.

How do private transfers differ by race and ethnicity and do such differences explain the racial and ethnic disparity in wealth? Using the Panel Study of Income Dynamics, this study examines private transfers by race and ethnicity and explores a causal relationship between private transfers and wealth. We examine private transfers in the form of financial support received and given from extended families and friends, as well as large gifts and inheritances. Our findings highlight important differences in private transfers by race and ethnicity: African Americans and Hispanics (both immigrant and nonimmigrant) receive less in private transfers than non-Hispanic whites.

For households headed by persons with disabilities, savings can provide near-term protection against hardship. Analysis of longitudinal data from the 2001 panel of the Survey of Income and Program Participation indicates that households with $2,000 or more in liquid assets (interest-earning assets held at financial institutions) are better able to avoid subsequent hardships such as forgone doctor visits and missed utility payments, compared to those with smaller (or no) asset holdings. This evidence has implications for possible increases in the resource limits for the Supplemental Security Income (SSI) program, now $2,000 for individuals and $3,000 for couples.

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