Black-White Income Gap Narrower For Millennials Than Gen X, Harvard Study Says

The income gap between Black and white young adults has narrowed for millennials compared to Generation X, according to a recent study by Harvard University and the U.S. Census Bureau. 

The study reveals that by age 27, Black Americans born in 1978 to poor parents earned nearly $13,000 less annually than their white counterparts. 

For those born in 1992, this gap reduced to about $9,500, marking a notable decrease in racial income disparity. 

Improved Economic Mobility for Black Millennials

The reduction in the income gap is attributed to increased economic mobility for Black children from low-income backgrounds and a decline in mobility for their white counterparts.

The study points to parental employment rates in the communities where individuals were raised as a significant factor influencing these outcomes.

Black individuals experienced enhanced mobility in areas with rising employment rates, while white individuals faced diminished mobility in regions with declining employment opportunities.

Growing Class Gap Among White Americans

While racial income disparities have improved, the study reports a widening class gap among white Americans.

White individuals born to low-income parents in 1978 earned around $10,300 less than those from affluent families.

This gap widened to approximately $13,200 for those born in 1992, primarily due to declining mobility for individuals from low-income households and increasing mobility for those from high-income backgrounds.

Regional Variations

The study also highlighted regional differences in economic mobility. Black individuals from low-income families saw the greatest economic mobility improvements in the Southeast and the industrial Midwest. 

On the other hand, economic mobility for white individuals from low-income families declined the most in the Great Plains and parts of the coasts.

Policy Implications and Recommendations

These findings suggest that policymakers could enhance economic mobility by investing in education, youth mentorship programs, and policies that increase interactions between different racial and economic groups. 

The researchers emphasized that community conditions, such as parental employment rates and social connections, significantly impact children’s economic outcomes.

They underscore the importance of targeted interventions to address regional disparities and promote equitable economic opportunities for all.

Feature Image Credit: Black Enterprise