Study Reveals Narrowing Income Gap for Black Millennials

A recent study uncovered a reduction in income disparity between Black and white young adults from Gen X to millennials. Black Americans saw improved income mobility, whereas income mobility for low-income white Americans diminished. The study highlights regional differences and emphasizes the importance of community employment rates.

A new study reveals that the income gap between Black and white young adults has narrowed from Generation X to millennials. Black Americans born into low-income families in 1978 earned nearly $13,000 less annually than their white counterparts. This gap shrank to about $9,500 for those born in 1992, as reported by researchers at Harvard University and the U.S. Census Bureau.

The reduction in income disparity is attributed to increased income mobility among low-income Black children and decreased mobility among white children from similar economic backgrounds. Key factors include employment rates in the communities where these individuals grew up. Improved employment rates for Black parents positively impacted their children's economic mobility. Conversely, white children faced declining mobility in areas where parental employment rates dropped.

Despite the narrowing racial income gap, the class gap widened among white Americans between generations. Additionally, regional differences were noted, with the greatest economic gains for low-income Black families occurring in the southeast and industrial Midwest. The study advocates for policies that promote mobility through educational investments and by increasing social connections across racial and economic lines.

(With inputs from agencies.)