Family connections and the black-white wealth gap among middle-class families

Recent scholarship has struggled to explain the large gaps that exist between the wealth that is amassed by white families compared to black families. These gaps exist in the population at large, even when one restricts one's analysis to middle-class families exclusively. This paper examines the connection between poverty among kin and wealth accumulation among middle-class families. Using data from the Panel Study of Income Dynamics, it finds evidence to support the hypothesis that part of the reason that black families have limited wealth is due to the fact that they are more likely to have poor relatives in their family tree.