Fact Sheet Do Financial Support and Inheritance Contribute to the Racial Wealth Gap?
Signe-Mary McKernan, Caroline Ratcliffe, Margaret Simms, Sisi Zhang
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Large differences in wealth holdings exist between white households and their African American and Hispanic counterparts. This fact sheet summarizes key findings from a study that explored the impact of private transfers on racial and ethnic wealth gaps. The study 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.

Research Areas Economic mobility and inequality Wealth and financial well-being Social safety net Race and equity
Tags Asset and debts Welfare and safety net programs Racial and ethnic disparities Income and wealth distribution Inequality and mobility Racial barriers to accessing the safety net Racial inequities in economic mobility Racial wealth gap Financial stability
Policy Centers Center on Labor, Human Services, and Population