The Racial Wealth Gap Is Replicating

Black households are more likely than White households to have student debt. This is a problem, according to a study by the Federal Reserve Bank of St. Louis. The disparity in student debt is replicating the racial wealth gap in the younger generation.

Using data from the 1997 National Longitudinal Survey of Youth, visiting scholar Fenaba R. Addo of the St. Louis Fed's Center for Household Financial Stability, examines the emerging racial wealth gap among those in the 1997 cohort (first interviewed when they were aged 12 to 16) who graduated from college. Among the graduates, Blacks were less likely than Whites to receive financial help from their parents in paying college expenses—58 percent of Blacks received help versus 72 percent of Whites. The Black college graduates who received help got less than their White counterparts—$4,200 for Blacks versus $11,700 for Whites.

These disparities occurred because Black parents are far less wealthy than White parents. The Black parents in the study had an average net worth of $48,500 versus $174,900 for the White parents. With parents less able to help out, Black students are more likely to depend on student loans, and this is replicating the racial wealth gap. By age 25, according to Addo's findings, the average net worth of the White graduates exceeded that of the Black graduates by 84 percent...

Average net worth of NLSY97 college graduates at age 25
Black: $20,186
White: $37,182

Source: Federal Reserve Bank of St. Louis, Parents' Wealth Helps Explain Racial Disparities in Student Loan Debt

Households by Race and Hispanic Origin in 2015

Overall household growth was sluggish between 2014 and 2015, but that's because the number of non-Hispanic White households fell by more than 200,000—an 0.2 percent decline. In contrast, the number of households headed by Blacks (alone or in combination) grew 2.8 percent, as did the number headed by Asians (alone or in combination). Hispanic households increased just 0.9 percent. Here is the number (and percent distribution) of households in 2015 by race and Hispanic origin...

Households in 2015 by race and Hispanic origin
Total: 124,587,000 (100.0%)
Asian: 6,333,000 (5.1%)
Black: 17,198,000 (13.8%)
Hispanic: 16,239,000 (13.0%)
Non-Hispanic White: 84,228,000 (67.6%)

Note: Numbers do not add to total because Asians and Blacks are those who identify themselves as being of the race alone or in combination. Hispanics may be of any race.
Source: Census Bureau, Income and Poverty in the United States: 2014

Who Is a "Typical" American?

The 69 percent majority of Americans think of themselves as a "typical" American, according to a survey by the Public Religion Research Institute. Older Americans are far more likely to see themselves as typical (78%) than young adults (55%). By race and Hispanic origin, here's who thinks they're typical...

Whites: 77%

Blacks: 61%

Hispanics: 48%

Source: Public Religion Research Institute, Most Americans Believe Protests Make the Country Better; Support Decreases Dramatically among Whites if Protesters are Identified as Black 

Arrested by Age 23

Among 23-year-old men, percent who have ever been arrested (excluding minor traffic violations), by race and Hispanic origin...

Black: 49%
Hispanic: 44%
White: 38%

Source: Demographic Patterns of Cumulative Arrest Prevalence by Ages 18 and 23, cited in the Urban Institute report Reducing Harms to Boys and Men of Color from Criminal Justice System Involvement

Age at First Birth

The average age of American women giving birth for the first time climbed to 26.0 in 2013, up from 25.8 in 2012 and one full year older than the average age at first birth in 2007—the year births peaked in the United States. Age at first birth varies by race and Hispanic origin...

Average age at first birth
29.4 for Asians
26.8 for non-Hispanic Whites
26.7 for Hispanics of Cuban origin
23.9 for Blacks
23.9 for Hispanics of Puerto Rican origin
23.4 for Hispanics of Mexican origin
22.9 for American Indians

Source: National Center for Health Statistics, Births: Final Data for 2013

Anemic Household Growth, 2013-14

The number of households in the United States increased by a tiny 0.4 percent between 2013 and 2014, according to the Census Bureau's latest estimates. In only 2 of the past 40 years have households grown more slowly (in 2008–09 and 2009–10). The 492,000 households added to the nation's total between 2013 and 2014 is the fourth smallest numerical gain in four decades of tracking the numbers (smaller gains were recorded in 1982–83, 2008–09, and 2009–10).

Also notable, the number of non-Hispanic White households fell slightly between 2013 and 2014. The decline marks only the 4th time in 40 years that the Census Bureau has estimated a drop in the number of non-Hispanic White households.

Nearly one-third of the nation's households are now headed by Blacks, Asians, or Hispanics. Black households outnumber Hispanic households by more than 1 million, and they grew faster than Hispanic households between 2013 and 2014 (a 1.8 percent gain for Blacks versus a 1.4 percent gain for Hispanics). Asian households are far less numerous than Black or Hispanic, but they grew by a faster 4.1 percent between 2013 and 2014.

Number (and percent distribution) of households by race and Hispanic origin, 2014
Total: 122,952,000 (100.0%)
Asian: 6,111,000 (5.0%)
Black: 16,855,000 (13.7%)
Hispanic: 15,811,000 (12.8%)
Non-Hispanic White: 83,641,000 (68.0%)

Source: Census Bureau, 2014 Current Population Survey

The Racial Wealth Gap

What accounts for the enormous gap in the wealth of blacks versus non-Hispanic whites? The wealth gap is far greater than the income gap. The net worth of black households was just $6,314 in 2011, according to the Census Bureau, a fraction of the $110,500 net worth of households headed by non-Hispanic whites.

Homeownership is one reason for the wealth gap. Non-Hispanic white households are much more likely than black households to own their home—72 versus 44 percent. Homeownership makes a big difference because a house is, for most Americans, their most valuable asset. Another important reason, however, is inheritance. According to a study published in Demography ("Do Racial Disparities in Private Transfers Help Explain the Racial Wealth Gap? New Evidence from Longitudinal Data," June 2014, $39.95), the larger inheritances and cash gifts received by non-Hispanic whites in a 10-year period account for a substantial 12 percent of the racial wealth gap.

Not only is inheritance already an important factor in the black-white wealth gap, but it may become an even bigger factor in the future. "Increases in large gifts and inheritances for white non-Hispanic families over time suggest a worsening of the white-black wealth gap in years to come," the researchers conclude.

Teen Birth Rate Plunges

If you think teenagers aren't paying attention to current events, these findings may change your mind. Between 2007 and 2011, the birth rate of the nation's 15-to-19-year-olds fell by a stunning 25 percent, to a record low of 31.3 births per 1,000 women in the age group. Shocked by the Great Recession, sexually active teens became more vigilant about using birth control.

Between 2007 and 2011, the birth rate of Hispanic teenagers fell 34 percent, more than the 24 percent decline for blacks and the 20 percent decline for non-Hispanic whites. The birth rate of Hispanic teens fell by 60 percent in Mississippi and by at least 50 percent in Alabama, South Carolina, Tennessee, and Virginia.

Source: National Center for Health Statistics, Declines in State Teen Birth Rates by Race and Hispanic Origin

The Declining Political Power of Older Whites

Among the 133 million Americans who reported voting in the 2012 presidential election, only 74 percent were non-Hispanic white. This figure is down from 81 percent in 2000 and 88 percent in 1992. What a difference a few decades make in the country's voter demographics. Here is the breakdown of 2012 voters by race (alone or in combination) and Hispanic origin...

Asian: 3.3%
Black: 14.0%
Hispanic: 8.4%
Non-Hispanic white: 73.7%

Add age to the calculation, and non-Hispanic whites aged 45 or older were only 48 percent of 2012 voters. This is well below their 54 percent share of voters in the 2010 congressional election.

Source: Census Bureau, Voting and Registration

Who Voted in 2012?

In the 2012 presidential election, blacks were more likely to vote than non-Hispanic whites. Fully 65.9 percent of blacks (race alone or in combination) voted in 2012 compared with a smaller 64.1 percent of non-Hispanic whites. The black voting rate hit an all-time high in 2012, while the non-Hispanic white rate was lower than in 2004 or 2008.

Fewer than half of Asian or Hispanic citizens went to the polls in 2012. The Asian voting rate was about the same in 2012 as in 2008, while the Hispanic rate was lower. Here are the 2012 voting rates for U.S. citizens aged 18 or older by race and Hispanic origin...

Total: 61.8%
Asian: 47.9%
Black: 65.9%
Hispanic: 48.0%
Non-Hispanic white: 64.1%

Source: Census Bureau, Voting and Registration

Movers by Race and Hispanic Origin

Non-Hispanic whites account for 63 percent of the U.S. population but only 54 percent of the nation's movers. Behind this relatively low figure is the fact that homeowners are less likely to move than renters, and non-Hispanic whites are more likely to own a home. Between 2010 and 2011, 36 million Americans moved and this is their distribution by race and Hispanic origin...

Asian: 6%
Black: 18%
Hispanic: 21%
Non-Hispanic white: 54%

Source: Census Bureau, Geographic Mobility: 2011 to 2012

Public School Minority Majority in 2016

Non-Hispanic whites will become a minority in the nation's public elementary and secondary schools in 2016, according to new school enrollment projections by the National Center for Education Statistics. In that year, non-Hispanic white children will be 49.6 percent of the 51 million students enrolled in public schools, down from the 51 percent majority today. Hispanics will account for 25.3 percent of students in 2016, blacks (alone) will be 15.6 percent of the total, Asians (alone) will be another 5.6 percent, students of two or more races 2.7 percent, and American Indians (alone) 1.2 percent.

Source: National Center for Education Statistics, Projections of Education Statistics to 2021

Slowing Growth Will Not Slow Diversity

The Census Bureau's new population projections forecast much slower growth than had been projected a few years ago. The U.S. population is projected to grow to 399.8 million rather than 439.0 million by 2050--a difference of 39 million people! But this slower growth does not mean the population will diversify any more slowly. Only 46.6 percent of Americans will be non-Hispanic white in 2050, according to the new projections, almost identical to the 46.3 percent forecast by the old projections.

Here are the Census Bureau's latest projections of the size (numerical and percent) of each race and Hispanic origin group in 2015 and 2050:

Asian (alone or in combination)
2015: 20 million (6.2%)
2050: 38 million (9.6%)

Black (alone or in combination)
2015: 46 million (14.4%)
2050: 70 million (17.4%)

Hispanic
2015: 57 million (17.8%)
2050: 112 million (27.9%)

Non-Hispanic white
2015: 198 million (61.8%)
2050: 186 million (46.6%)

Source: Census Bureau, 2012 National Population Projections

New Projections Show Much Slower Population Growth

A lot has happened since the last time the Census Bureau produced national population projections: a recession, a baby bust, a 2010 census that counted 3 million fewer non-Hispanic whites than expected, and two elections in which minorities flexed their political muscle with profound results. How do the Census Bureau's new projections capture these events and what will be their impact on the nation's future population? Let's take a look.

Much slower population growth. The Census Bureau's new projections show a population of just 399.8 million in 2050. This is much less than the 439.0 million projected for 2050 in the previous set of projections (produced in 2008).

Non-Hispanic white decline. The new projections show the number of non-Hispanic whites peaking in 2024 at just under 200 million and declining steadily after that. As a share of the population, however, non-Hispanic whites will remain above 50 percent until 2043. Non-Hispanic whites are already in decline among Americans under age 45. The non-Hispanic white share of the younger population will fall below 50 percent in 2027. Among the nation's children (under age 18), the non-Hispanic white share is projected to fall below 50 percent in 2018.

No baby bust in projections. The Census Bureau's forecast of slowing population growth may not be conservative enough. The projections assume the addition of well more than 4 million infants (under age 1) each year, including 4.2 million in 2012. Yet, according to the National Center for Health Statistics, the provisional number of births for the 12 months ending in June 2012 was just 3.9 million.

Source: Census Bureau, 2012 National Population Projections

Single-Person Households by Race and Hispanic Origin

Percentage of households headed by people who live alone, by race and Hispanic origin...

Total: 27%
Asian: 18%
Black: 33%
Hispanic: 17%
Non-Hispanic white: 29%

Source: Census Bureau, 2012 Current Population Survey

Cell Phone Activities by Race and Hispanic Origin

Fully 85 percent of Americans own a cell phone, and they use their phones for much more than making calls. Among cell phone owners, there are big differences in cell phone activities by age, but few by race and Hispanic origin, according to Pew...

Percent who use their phone to take pictures
Black: 79%
Hispanic: 85%
Non-Hispanic white: 80%

Percent who use their phone for texting
Black: 80%
Hispanic: 85%
Non-Hispanic white: 79%

Percent who use their phone to access the Internet
Black: 60%
Hispanic: 66%
Non-Hispanic white: 52%

Source: Pew Internet & American Life Project, Cell Phone Activities 2012

Minorities More Multigenerational

Multigenerational households have gotten a lot of press lately, thanks to their rise during the Great Recession. Despite the media attention, they are not all that common. In the 2009-2011 time period, only 4.3 million of the nation's 76 million family households were home to three or more generations--or 5.6 percent. The Census Bureau defines a multigenerational household as one that includes three or four generations (grandparents, parents, and children, and possibly great-grandparents). Not included are households in which parents live with adult children.

Probably the most interesting thing about multigenerational households is how their importance varies among Asians, blacks, Hispanics, and non-Hispanic whites. Take a look at the share of family households that are multigenerational by race and Hispanic origin:

Asian: 9.4%
Black: 9.5%
Hispanic: 10.3%
Non-Hispanic white: 3.7%

These numbers reflect both economic and cultural differences among race and Hispanic origin groups. The Census Bureau report examines the multigenerational share of households by state, and by race and Hispanic origin within states. Among Hispanics, for example, the multigenerational share of family households ranges from a low of 2.3 percent in North Dakota to a high of 12.7 percent in California.

Source: Census Bureau, Multigenerational Households: 2009-2011

Birth Control Is a Big Deal

Nearly every American woman at risk of becoming pregnant is currently using birth control. According to the latest data from the National Center for Health Statistics, 89 percent of women aged 15 to 44 who are at risk of becoming pregnant (meaning they are sexually active and not pregnant) are using birth control. There is almost no variation in birth control use by demographic characteristic.

Percent who use birth control by religion
No religion: 86.9%
Catholic: 88.7%
Baptist/fundamentalist Protestant: 89.9%
Other Protestant: 90.2%

Percent who use birth control by education
Not a high school graduate: 88.3%
High school graduate only: 90.2%
Some college, no degree: 91.5%
Bachelor's degree or more: 89.6%

Percent who use birth control by race/Hispanic origin
Asian: 89.7%
Black: 82.8%
Hispanic, born in US: 89.5%
Hispanic, foreign born: 89.7%
Non-Hispanic white: 90.5%

Source: National Center for Health Statistics, Current Contraceptive Use in the United States, 2006-2010, and Changes in Patterns of Use Since 1995

Minority Majority: Not So Fast

A few months ago there was quite a hullabaloo when the Census Bureau's population estimates showed minorities to be the majority among the nation's newborns for the first time, with non-Hispanic whites accounting for only 49.6 percent of births between July 1, 2010, and July 1, 2011. But the bureau may have been getting ahead of itself and not accounting for the ongoing baby bust, which has affected Hispanics and blacks more than non-Hispanic whites.

According to estimates by the National Center for Health Statistics, non-Hispanic whites accounted for the 54 percent majority of babies born in the United States in 2010 and 2011--a considerably larger share than had been estimated. The reason for the larger-than-expected non-Hispanic white share of births is the Great Recession and its disproportionate impact on the childbearing of Hispanic women and, to a lesser extent, black women.

The fertility rate of Hispanic women plummeted between 2007 and 2011, falling from 97.4 to 75.7 births per 1,000 women aged 15 to 44--a 22 percent decline. The fertility rate of non-Hispanic black women fell 8 percent during those years--from 71.4 to 65.5. Meanwhile, non-Hispanic white fertility fell by a smaller 4 percent, from 61.0 to 58.8. Consequently, the Hispanic share of births is shrinking rather than growing. Hispanics accounted for 23 percent of births in 2011, down from 25 percent in 2007 and well below the 26 percent that had been estimated by the Census Bureau. The minority majority will get here, just not as soon as we thought.

Source: National Center for Health Statistics, Births: Preliminary Data for 2011

Life Expectancy, 2011

Life expectancy at birth in the United States was unchanged in 2011, at 78.7 years, according to the National Center for Health Statistics. For females, life expectancy is 81.1 years at birth, and for males it is 76.3 years. Life expectancy differs by race and Hispanic origin as follows...

Hispanic females: 83.7
Non-Hispanic white females: 81.1
Hispanic males: 78.9
Non-Hispanic black females: 77.8
Non-Hispanic white males: 76.4
Non-Hispanic black males: 71.6

Source: National Center for Health Statistics, Deaths: Preliminary Data for 2011