Minorities’ Wealth is Not Protected by a College Degree

New York Times: “A new report by the Federal Reserve Bank of St. Louis “raises troubling questions about the ability of a college education to narrow the racial and ethnic wealth gap. ‘Higher education alone cannot level the playing field,’ the report concludes.”

“Economists emphasize that college-educated blacks and Hispanics overall earn significantly more and are in a better position to accumulate wealth than blacks and Hispanics who do not get degrees.”

“But while these college grads had more assets, they suffered disproportionately during periods of financial trouble.”

“From 1992 to 2013, the median net worth of blacks who finished college dropped nearly 56 percent (adjusted for inflation). By comparison, the median net worth of whites with college degrees rose about 86 percent over the same period, which included three recessions.”

“There is not a simple answer to explain why a college degree has failed to help safeguard the assets of many minority families. Persistent discrimination and the types of training and jobs minorities get have played a role. Another central factor is the heavy debt many blacks and Hispanics accumulate to achieve middle-class status.”

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