On February 5th, Max Liebeskind with the J.P. Morgan Chase joined MAX to review recent research from the Racial Gaps in Financial Outcomes Report showing the stark differences in financial outcomes among racial groups and the uneven access to economic opportunity for numerous individuals.
The sample universe for the research included 1.8 million families in Florida, Georgia, and Louisiana with Chase checking accounts. Key findings include:
- Median Black and Hispanic families earn roughly 70 cents in take-home
income for every dollar earned by White families, and racial gaps in
earnings are largest for higher-income and older account holders.
- Racial gaps in liquid assets are twice as large as gaps in take home income. They persist across the income spectrum and are widest in the 65+ age cohort.
- Black women face the greatest gap in take-home income and liquid assets compared to White men, but racial gaps are larger among men than women.
- Across geographies, the financial outcomes of Hispanic families vary the most, while the financial outcomes of Black families vary the least. Black-White gaps in financial outcomes are largest in Louisiana, while Hispanic-White gaps are largest in Florida.
- After involuntary job loss, Black and Hispanic families cut their everyday spending more so than White families, differences that are explained by racial gaps in liquid and financial asset buffers.
- Upon receipt of a tax refund, Black and Hispanic families increase their expenditures more so than White families, differences that are explained by racial gaps in liquid and financial asset buffers.
Click here for the report.
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