Do Financial Support and Inheritance Contribute to the Racial Wealth Gap?

Brief

Do Financial Support and Inheritance Contribute to the Racial Wealth Gap?

Abstract

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.

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