Tuesday, July 28, 2020

How the White-Black median household income gap has changed over time and how that compares to the Asian-White gap

The post from two days ago covered the Asian-White gap, which has generally been growing since 1988 (the first year the Census Bureau reports Asian incomes). Since 1988, Asian income has always been higher than White income.

One thing I will show later is that the Asian-White gap as a percentage of the White-Black gap has been growing.

The graph below shows the White-Black gap since 1967 (the first year the Census Bureau reports median household income). Everything is adjusted for inflation (in 2018 dollars). I used the BLACK ALONE/BLACK and the WHITE ALONE/WHITE series (see the earlier post for an explanation).




The gray line shows the gap. It has been growing in recent years. It was about $25,000 in 2018, close to what it was in 1988. The table below has all the numbers.


Year
White
Black
Diff
1967
49,102
28,510
20,592
1968
51,138
30,155
20,983
1969
53,163
32,134
21,029
1970
52,646
32,044
20,602
1971
52,354
30,926
21,428
1972
54,759
31,963
22,796
1973
55,809
32,851
22,958
1974
53,927
32,071
21,856
1975
52,512
31,524
20,988
1976
53,474
31,797
21,677
1977
54,020
31,878
22,142
1978
55,470
33,335
22,135
1979
55,839
32,784
23,055
1980
54,361
31,318
23,043
1981
53,577
30,065
23,512
1982
52,943
30,005
22,938
1983
52,662
29,885
22,777
1984
54,586
31,096
23,490
1985
55,588
33,072
22,516
1986
57,411
33,076
24,335
1987
58,222
33,231
24,991
1988
58,900
33,577
25,323
1989
59,619
35,456
24,163
1990
58,359
34,898
23,461
1991
56,920
33,909
23,011
1992
56,665
32,995
23,670
1993
56,560
33,519
23,041
1994
57,198
35,344
21,854
1995
58,705
36,755
21,950
1996
59,413
37,543
21,870
1997
60,990
39,202
21,788
1998
63,170
39,143
24,027
1999
63,989
42,196
21,793
2000
64,216
43,380
20,836
2001
63,293
41,899
21,394
2002
63,107
40,628
22,479
2003
62,451
40,573
21,878
2004
62,177
40,105
22,072
2005
62,584
39,774
22,810
2006
63,264
39,913
23,351
2007
63,270
41,176
22,094
2008
61,160
40,006
21,154
2009
60,845
38,228
22,617
2010
59,682
37,077
22,605
2011
58,423
36,061
22,362
2012
58,846
36,510
22,336
2013
61,268
38,140
23,128
2014
60,376
37,583
22,793
2015
63,710
39,108
24,602
2016
64,729
41,323
23,406
2017
66,864
41,239
25,625
2018
66,943
41,361
25,582


The next chart does ratio instead of absolute difference. Before 1990, Black income was almost always 60% or less of White income while since then it is almost always been above 60%. But this looks like slow progress.



This next chart shows the Asian-White gap as a percentage of the White-Black gap.  The long term trend is for it to grow.

In 1988, White income was 58,900 while it was 66,034 for Asians. That is a gap of 7,134. From the table above, the White-Black gap was 25,323. So the ratio was 28%.

The Asian-White gap in 2018 was 20,251 in 2018. The White-Black gap was 25,582. That is a ratio of about 79%.

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