Racial differences in patterns of wealth accumulation

Maury Gittleman, Edward N. Wolff

    Research output: Contribution to journalArticlepeer-review


    Making use of PSID data for 1984, 1989, and 1994, we examine race differences in patterns of asset accumulation. Our results indicate, as expected, that inheritances raise the rate of wealth accumulation of whites relative to that of African Americans. But, while whites devote a greater share of their income to saving, racial differences in saving rates are not significant, once we control for income. Though our results may be period-specific, we also do not find evidence that the rate of return to capital is greater for whites than for African Americans. Simulations suggest that African Americans would have gained significant ground relative to whites during the period if they had inherited similar amounts, saved at the same rate, had comparable income levels and, more speculatively, had portfolios closer in composition to those of whites. 04 by the Board of Regents of the University of Wisconsin System.

    Original languageEnglish (US)
    Pages (from-to)193-233
    Number of pages41
    JournalJournal of Human Resources
    Issue number1
    StatePublished - 2004

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Strategy and Management
    • Organizational Behavior and Human Resource Management
    • Management of Technology and Innovation


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