The Economic Impact of Closing the Minority Earnings Gap

Report | October 24, 2013

There is a substantial earnings gap between non‐Hispanic whites and persons of color in the U.S. that applies to males and females across all ages.

This earnings gap exists when consideration is limited to working individuals but is even larger when those with zero earnings are included.

Much of this earnings gap can be explained by gaps in education and health that, in turn, are impacted by the earnings gap from earlier generations.

Children born to families with very low earnings will, on average, grow up with less education, poorer health, and lower earnings potential.

Thus the cycle of poverty continues from generation to generation.

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