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Hello, I need to do a presentations about two articles and i need their speaker notes too, thanks! I just need to locate another article that talks about gender and wealth inequality or gender and income inequality. I have located one but need another one. I need a powerpoint presentations (5 slides each) for both article with speaker notes. Accelerat ing t he world's research. Wealth Inequality in Black and White: Cultural and Structural Sources of the Racial Wealth Gap Cedric Herring Wealth Inequality in Black and White: Cultural and Structural Sources of the Racial Wealth Gap Cite this paper Get the citation in MLA, APA, or Chicago styles Downloaded f rom Academia.edu  Related papers 2003, Educat ion Foundat ion, Dissert at ion of James E Curt is, Jr igri jecjef universit y.org Racial dif f erences in risky asset ownership: A t wo- st age model of t he invest ment decision- making pr… Michael Gut t er T he Evolut ion of t he New Black Middle Class Bart Landry Download a PDF Pack of t he best relat ed papers  https://www.academia.edu/22908715/Wealth_Inequality_in_Black_and_White_Cultural_and_Structural_Sources_of_the_Racial_Wealth_Gap?auto=citations&from=cover_page https://www.academia.edu/22908715/Wealth_Inequality_in_Black_and_White_Cultural_and_Structural_Sources_of_the_Racial_Wealth_Gap?from=cover_page https://www.academia.edu/37282624/2003_Education_Foundation_Dissertation_of_James_E_Curtis_Jr?from=cover_page https://www.academia.edu/27944179/Racial_differences_in_risky_asset_ownership_A_two_stage_model_of_the_investment_decision_making_process?from=cover_page https://www.academia.edu/19546085/The_Evolution_of_the_New_Black_Middle_Class?from=cover_page https://www.academia.edu/22908715/Wealth_Inequality_in_Black_and_White_Cultural_and_Structural_Sources_of_the_Racial_Wealth_Gap?bulkDownload=thisPaper-topRelated-sameAuthor-citingThis-citedByThis-secondOrderCitations&from=cover_page 1 23 Race and Social Problems ISSN 1867-1748 Volume 8 Number 1 Race Soc Probl (2016) 8:4-17 DOI 10.1007/s12552-016-9159-8 Wealth Inequality in Black and White: Cultural and Structural Sources of the Racial Wealth Gap Cedric Herring & Loren Henderson Wealth Inequality in Black and White: Cultural and Structural Sources of the Racial Wealth Gap Cedric Herring 1 • Loren Henderson 1 Published online: 10 February 2016 � Springer Science+Business Media New York 2016 Abstract Using data from the 2013 Survey of Consumer Finances, this research examines competing and comple- mentary cultural and structural explanations of the sources of racial differences in wealth. We use OLS regression and quantile regression to identify the major individual-level sources of wealth differences between African Americans and whites. Whites have more favorable wealth charac- teristics than do African Americans on all of the variables in the analysis: gender of household head, bankruptcies, spending patterns, stock ownership, business ownership, home ownership, inheritance, educational attainment, income, occupation, age, and number of children. Cultural factors, having a female-headed family, spending patterns, and inheritance account for little of the racial wealth gap. Racial differences in income, stock ownership, and busi- ness ownership account for much of the explained racial wealth gap. Moreover, compared with whites, African Americans receive significantly lower wealth returns to education, age, income, stock ownership, and business ownership. We discuss the implications of our findings. Keywords Racial inequality � Wealth inequality � Racial wealth gap � Net worth and race Several studies have documented racial and ethnic differ- ences in wealth ownership (Parcel 1982; Horton 1992; Oliver and Shapiro 2006; Lewin-Epstein et al. 1997; Conley 1999; Keister 2000a, b; Avery and Rendall 2002; Shapiro 2004; Semyonov and Lewin-Epstein 2011, 2013). Although researchers agree that there are extreme and persistent racial differences in wealth, the reality of the ever-increasing wealth gap in the USA has spawned scholarly debates about the root causes of this phenomenon (e.g., Massey and Denton 1993; Oliver and Shapiro 1995; Conley 1999; Keister and Moller 2000; Shapiro et al. 2013; Sullivan et al. 2015). Indeed, there are now competing explanations in the ‘‘race-class’’ debate concerning wealth accumulation and inequality. Some scholars have taken the view that racial differences in wealth are primarily the result of differences in cultural and behavioral factors such as familial patterns, amounts of self-control, willingness to delay gratification, and investment and consumption pat- terns (e.g., Lewis 1963; Wilson 1987; Brimmer 1988; Keister and Moller 2000; Lawrence 1991; Altonji and Doraszelski 2005; Charles et al. 2009). Others focus on historical and contemporary structural factors and unequal ownership opportunities as the primary determinants of black–white wealth inequality (e.g., Oliver and Shapiro 1995; Conley 1999, 2001; Neckerman and Torche 2007; Sullivan et al. 2015). Competing and complementary theories identify several factors that may help account for racial differences in wealth in the USA. This paper provides an examination of several social science theories that seek to explain racial disparities in wealth. Using data from the 2013 Survey of Consumer Finances, it looks at the relative contribution of contemporary cultural factors (e.g., family structure and spending patterns), structural factors (e.g., housing own- ership and business ownership), human capital (e.g., edu- cational attainment), and investment decisions (e.g., ownership of stocks). Guided by these social science explanations of racial wealth inequality, we use nationally & Cedric Herring [email protected] Loren Henderson [email protected] 1 University of Maryland, Baltimore County, Baltimore, MD, USA 123 Race Soc Probl (2016) 8:4–17 DOI 10.1007/s12552-016-9159-8 Author's personal copy http://crossmark.crossref.org/dialog/?doi=10.1007/s12552-016-9159-8&domain=pdf http://crossmark.crossref.org/dialog/?doi=10.1007/s12552-016-9159-8&domain=pdf representative data from the 2013 Survey of Consumer Finances to carry out regression analysis to identify the major individual-level sources of wealth differences between African Americans and whites. We attempt to show which factors identified by the cultural and behav- ioral literature, the literature that focuses on structural and unequal ownership opportunities, as well as those that identify other sociodemographic and human capital vari- ables operate differently for African Americans and whites. Below, we provide a brief overview of those literatures. Review of the Literature Cultural and Behavioral Explanations of the Racial Wealth Gap Cultural and behavioral explanations of the racial wealth gap often argue that wealth differentials result from one or more cultural traits of African Americans. The emphasis is on family arrangements, attitudes, and values rather than social structure, although the two types of factors are often linked together in these models. Scholars in this tradition argue that racial wealth inequality is the result of differ- ences in cultural factors such as lack of self-control, the unwillingness to delay gratification, and problematic con- sumption patterns (e.g., Lewis 1963; Galenson 1972; Wilson 1987; Brimmer 1988; Lawrence 1991; Szydlik 2004). The ‘‘culture of poverty thesis,’’ for example, argues that the lack of wealth (i.e., poverty) is caused by cultural and behavioral practices that are antithetical to wealth accumulation (Frazier 1957; Lewis 1963; Banfield 1974; Brimmer 1988; Charles et al. 2009). Cultural explanations of economic inequality also often view the lack of wealth as a result of cultural pathology. Frazier (1957), for example, attempted to explain why seemingly affluent African Americans continued to lag behind whites. He argued that affluent African Americans—who he dubbed the black bourgeoisie—developed a serious inferiority complex due to their continued exposure to white racism and ideology. He contended that the black bourgeoisie lived in a world of make believe that insulated them from their internalized realization that they were inferior to whites in the market place and in society overall. This world of make believe included extreme partying, gam- bling, sex, and lavish spending on such things as houses, cars, and clothes. These behaviors masked the reality that they had less wealth and access to the polity than they deserved. These behavioral patterns supposedly also stun- ted the economic prosperity of African Americans in the middle class. Frazier (1957) further characterized African Americans as conspicuous consumers who engaged in excessive spending on frivolous items. Frazier (1957) ultimately argued that economic and other types of inequality were a result of middle-class African Ameri- cans’ pathological behavior and self-hating desire to be white. There are more recent explanations of the racial wealth gap that also focus on problematic conspicuous consump- tion and lavish spending by African Americans (Charles et al. 2009). Under the conspicuous consumption thesis, individuals will purchase goods and services that are not needed. This will result in a lack of financial assets. This argument is used to help explain the wealth gap between African Americans and whites by asserting that African Americans spend their money frivolously and fail to invest in income-generating assets (Brimmer 1988). While con- sumption patterns are not enough to account for the wealth gap between blacks and whites (Hamilton and Darity 2010), it is still important to examine such factors as contributors to the racial wealth gap. Another kind of cultural theory of racial wealth dis- parities focuses on racial differences in family structure and family background (Wilson 1987; Keister 2004). Keister (2004) suggests that racial differences in family structure are important to explaining the black–white wealth gap. One of her central claims is that family structure and family background are important determi- nants of wealth. Moreover, because family structures differ by race in the USA, racial disparities in adult wealth accumulation are a function of dissimilarities in family type and resources. Moreover, Keister (2004) argues that female-headed households are disadvantaged compared to two-parent (i.e., husband wife coupled) households because women continue to work in segregated labor markets, earn less than men, and have more difficulty securing resources that translate into income-generating assets. She shows that married couples have more wealth than do other households. Similarly, Wilson (1987) argues that the female-headed household is one factor related to poverty. Other scholars also support the claim that married couples are more likely to own homes, have higher housing values, and have greater wealth compared with other family types. Married couples have distinct advantages in wealth accumulation over other family types because they have the potential for dual earners. However, there is also a distinct gender dynamic that occurs. African American women, in particular, have especially low amounts of wealth (Brown 2012). Even when there is only one earner in the married family, these households earn more than female-headed households. Yet, when married couples send the wife into the workforce, their wealth lags behind those families that send only the husband into the work- force. This is directly related to gender inequality in the labor market. Race Soc Probl (2016) 8:4–17 5 123 Author's personal copy In short, cultural and behavioral explanations of racial differences in wealth have in common the idea that African Americans do worse than white Americans because of some cultural deficiency or shortcoming among African Americans. These explanations place far less emphasis on structural and opportunity-related factors that might account for racial differences in wealth. Structural and Unequal Ownership Opportunity Explanations of the Racial Wealth Gap In contrast to the view that African Americans’ patholog- ical behaviors as the major contributing factors to eco- nomic inequality, proponents of structural and unequal ownership opportunity explanations point to discriminatory practices and racialized policies in labor markets, housing markets, and credit markets as key sources of racial wealth disparities. Such discriminatory practices and policies have created generational consequences that continue to impact African Americans today (e.g., inherited poverty). Histor- ically, whites have been more able than African Americans to secure wealth in the form of businesses, homes, and stocks because of governmental policies that favored whites. African Americans were, by and large, denied the opportunity to acquire and pass down accumulated wealth until the 1960s. Lower wages and incomes are also related to the wealth gap between whites and African Americans (Conley 1999). These lower wages and incomes are, in part, products of labor market discrimination and unequal returns to human capital characteristics such as education. Moreover, such discrimination in labor markets accumulates over the life course (Thomas et al. 1994). ‘‘Blacks have had much less opportunity than whites to earn, save, or to inherit wealth. Because of this historical legacy, black families have had few opportunities to accumulate wealth and to pass it on to their descendants’’ (Brimmer 1988:153). One important way that wealth is acquired and trans- ferred from generation to generation is through home ownership (Conley 1999; Keister 2000a, b; Avery and Rendall 2002; Campbell and Kaufman 2006). Home ownership continues to be a significant source of wealth for most people in the USA (Wolff 1995; Ratcliff and Maurer 1995; Keister 2000a, b; Shapiro et al. 2013; Sullivan et al. 2015). Unfortunately, however, discrimination in housing markets and home financing are also major factors con- tributing to racial wealth inequality (Massey and Denton 1993). African Americans are often denied housing loans in locations that would allow them to acquire housing that appreciates at the same rate as for whites. Thus, housing in racially segregated housing markets is a leading cause of racial inequality in the USA. because equity in housing represents a substantial portion of most people’s wealth. This results in gaps in wealth holdings between African Americans and whites (Rugh and Massey 2010). ‘‘Redlining’’ is another important reason for the racial wealth gap. ‘‘Redlining is a process by which goods or services are made unavailable, or are available only on less than favorable terms, to people because of where they live regardless of their relevant objective characteristic’’ (Squires 1992:2). Prior to the Civil Rights Act of 1964, ‘‘fewer than 1 % of all mortgages in the nation were issued to African Americans’’ (Kirp et al. 1995:7). This was a consequence of redlining practices supported by the US government. This injurious practice restricted African Americans’ full participation in the housing market (Mas- sey and Denton 1993). In a similar vein, restrictive cove- nants—‘‘contractual agreements among property owners stating that they would not permit a black to own, occupy, or lease their property … signing the covenant bound themselves and their heirs to exclude blacks from the covered area for a specific period of time’’ (Massey and Denton 1993:36)—made it nearly impossible for blacks to acquire home financing through the Federal Housing Administration (FHA) (Massey and Denton 1993; Conley 1999; Lipsitz 2006). Despite current federal laws prohibiting discrimination in housing, disparities remain (Lipsitz 2006). These dis- criminatory practices continue to restrict the ability of blacks at all income levels to leverage their resources in order to dramatically reduce the disparity in wealth (Oliver and Shapiro 1995). Once the housing bubble burst in the mid-2000s, it had a greater impact on African American households (Taylor et al. 2011). Black households lost 53 % of their wealth compared with whites who lost 16 % because blacks were ‘‘more dependent on home equity as a source of wealth’’ (Taylor et al. 2011:7). Relatedly, Shapiro (2006) suggests that subprime lending became the new redlining. He argues that banks systematically targeted African Americans through ‘‘objective’’ criteria such as credit scores to offer them subprime loans. These loans often had higher fees, interest, penalties, and were, there- fore, more difficult to fulfill (Shapiro 2006; Henderson et al. 2015). Many African Americans were able to pur- chase their first home with such contracts; unfortunately, many of these loans resulted in African Americans falling further into debt, foreclosure, and wealth depletion. Another, often overlooked structural source of racial differences in wealth is business ownership. In a survey of affluent Americans (i.e., with incomes over $100,000), 70 % of those with at least $3 million in assets had acquired the bulk of their wealth through business owner- ship (US Trust 2013). In addition, net worth is greater for white business owners than for other demographic groups (Butler and Herring 1991; Cavalluzzo and Wolken 2002). For example, in 1998 the mean (median) value of net worth 6 Race Soc Probl (2016) 8:4–17 123 Author's personal copy was $687,719 ($150,000) for white business owners com- pared to $159,962 ($80,000) for African American busi- ness owners (Cavalluzzo and Wolken 2002). Moreover, whites are significantly more likely to be business owners than are African Americans (Butler and Herring 1991; Bates 2006). Combined, these factors suggest that racial differences in business ownership may also provide a potential explanation of the racial wealth gap. According to this unequal ownership opportunity framework, African Americans have also been dispropor- tionately denied access to loans for business development by banks (Conley 1999). Whites, on the other hand, were provided low-interest loans and access to wealth-generat- ing banking options (Conley 1999). African Americans have historically engaged in entrepreneurial activities (Butler and Herring 1991; Graham 2000); however, as Butler (1991) suggests, African Americans engaged in what he called the economic detour model of economic development. By this, he means that they could not conduct business in non-black communities. Not only were African Americans forbidden from entering the traditional work- force without being discriminated against, they were also forced to endure discrimination in their business operations (Butler 1991). Such practices have contributed to racial disparities in business ownership and wealth inequality. Is It Cultural, Structural, or a Little of Both? Thus far, this paper has focused on cultural and structural frameworks that seek to explain the continued racial wealth gap. However, cultural and structural explanations of wealth inequality are not mutually exclusive. Indeed, some factors like inheritance and intergenerational wealth transfers are incorporated into both types of explanations in different fashions. This point is illustrated in qualitative works such as Johnson’s (2014) The American Dream and the Power of Wealth. Johnson (2014) shows how beliefs in meritocracy and opportunity not only serve to gloss over educational inequality, but more significantly, serve to reproduce racial wealth inequality. She shows how meri- tocratic ideology is passed down from one generation to the next. In doing so, she explores the paradoxical beliefs of sympathetic Americans who agree with the ideal of hard work while reaping the benefits of unearned privilege. Her interviews with affluent children reveal that they have several similarities with their parents. They hold views of inequality that, while proclaiming a commitment to hard work and equal opportunity, really exhibit stereotyped and racially tinged views of the poor and demonstrate an unawareness of the centrality of inherited advantages. So, while much of privilege and disadvantage of wealth is inherited and passed along from generation to generation, so too are cultural beliefs and values that prop us such differences in wealth. Explanations do not always fit neatly within cultural or structural categories. In particular, consumption, invest- ment, and inheritance patterns have both cultural and structural elements. There are other sociodemographic, life cycle, and human capital factors that may play a central role in explaining the racial wealth gap. This section reviews these factors and discusses other social forces that are not typically linked to the racial wealth gap debate. Age and the Life Cycle Age is not usually associated with the racial wealth gap debate. However, life cycle approaches can offer powerful insights into racial differences in wealth. The life cycle model can help identify critical events in people’s lives that have consequences for their ability to accumulate wealth. For example, racial differences in parents’ ability to pay for college education for their children will have lifelong effects on wealth accumulation. Those whose parents cannot or do not pay are likely to be saddled with student loans that exceed their ability to repay them if they are able to go to college at all (Shapiro 2004). Similarly, whites are more likely than are African Americans at crucial points in their lives (e.g., when marrying or buying a home) to receive substantial wealth transfers from family members in the form of no interest loans or cash (Shapiro 2004). There are also racial differences in health status, morbidity, mortality, and life expectancy that have implications for wealth accumulation. And once people reach retirement, they deplete assets and lower their overall wealth (Ando and Modigliani 1963; Rhee 2013; National Institute on Aging and National Institutes of Health 2015). The life course approach does not fully account for findings that show differential patterns of accumulation and depletion of wealth over the life cycle for different racial groups (Keister and Moller 2000). Still, it calls attention to the possibility that age and other life course forces can play central roles in racial disparities in wealth. Chiteji (2010) also provides a life cycle explanation of racial wealth inequality. She argues that African Americans are systematically disadvantaged in credit markets com- pared with their white counterparts. The practice of charging African Americans higher interest has resulted in lower wealth transfers and decreased ability to accumulate wealth throughout the life course. Finally, Herring et al. (2013) put forth evidence in support of a ‘‘cumulative effects of discrimination’’ model, which claims that the black–white wealth gap increases over the life course for each historical period. They pro- pose that younger African Americans have always done better than older African Americans when compared with Race Soc Probl (2016) 8:4–17 7 123 Author's personal copy similar whites because the negative impact of discrimina- tion is cumulative over the life course. In other words, the effects of race on disparities in wealth accumulate over the life course and lead African Americans to have a cumu- lative disadvantage in wealth. Investments Oliver and Shapiro (1995) show that at lower income levels, African Americans spend relatively more than whites on housing and transportation rather than income- producing assets. However, such spending is a conse- quence of home mortgage discrimination and the need for many African Americans to purchase reliable cars in order to commute longer distances to work because of labor market segregation that locates their jobs longer distances from their homes. Oliver and Shapiro (1995) also show that at higher income levels, African Americans save more while whites invest in more wealth-generating instruments. Brimmer (1988) argues that the investment patterns of African Americans reflect risk aversion and lack of familiarity with the stock market. These different behaviors are related to differences in social networks and connec- tions that affect amounts and types of information about the inner workings of the stock market. He argues that the lack of useful information about investment strategies lead to very different asset holdings between African Americans and whites. Similarly, at the time of the Great Recession, African Americans lost 71 % of their investments compared with a 9 % loss of stock investments for whites (Taylor et al. 2011). Even more, ‘‘since the official end of the recession in mid-2009, the housing market in the USA has remained in a slump while the stock market has recaptured much of the value it lost from 2007 to 2009. Given that a much higher share of whites than blacks or Hispanics own stocks—as well as mutual funds and 401(k) or individual retirement accounts (IRAs)—the stock market rebound since 2009 is likely to have benefited white households more than minority households’’ (Taylor et al. 2011:5). Thus, it is likely that investment patterns play a role in the racial wealth gap. While there is little evidence of different savings rates between African Americans and whites at similar income levels (Gittleman and Wolff 2004), whites generally have greater savings, and thus, they may be more likely to use these savings to invest in the market (Brimmer 1988). Brimmer (1988) suggests that as African Americans begin to invest more often in the stock market and develop cul- tural capital to share with others in their communities, their involvement and share of the market will increase. Although Brimmer (1988) considers some structural fac- tors, his arguments about risk-taking and family structure are primarily cultural inasmuch as they invoke personal responsibility and choice as the major factors related to the black–white wealth gap. Oliver and Shapiro (1995) suggest that although there are differences in investment strategies between African Americans and whites, these strategies reflect structural barriers for some groups and privileges for others rather than cultural patterns that demonstrate pathology or cultural competence. Inheritance and Intergenerational Wealth Transfers Inheritance and intergenerational wealth transfer have also been viewed as central sources of the racial wealth gap (Oliver and Shapiro 1995; Conley 1999; Darity et al. 2001; Semyonov and Lewin-Epstein 2001; Gittleman and Wolff 2004; Shapiro 2004). Inheritance creates and maintains social inequality (Szydlik 2004); still, African Americans have less wealth, in part, because of their lower intergen- erational transfers of wealth (Smith 1995). Oliver and Shapiro (1995) argue that, through inheritance, the children of whites and blacks chart very different economic courses. Through inheritance and wealth transfers, white families pass on more than money. They also transfer class and racial privileges, as well as disadvantages from one gen- eration to another (Shapiro 2004). ‘‘Blacks received 8 cents of inheritance for every dollar inherited by whites’’ (Sha- piro 2004:69). Yet, it is still important to analyze wealth transfers between living parties because as much as 43 % of all wealth may be transferred while both parties are living (Shapiro 2004). Shapiro also documented that ‘‘28 % of whites received bequests, compared to just 7.7 % of black families’’ (p. 69). In part, this can be explained by the lower asset holdings of African Americans that make intergenerational wealth transfers less possible; however, this does not fully account for the racial wealth gap nor does it fully explain why African Americans provide lower amounts of inheritance to their children (Smith 1995). Shapiro (2004) indicated that many whites acknowledge that they receive substantial wealth transfers from their family members in the form of low or no interest loans, cash, and college tuition. Yet, these beneficiaries continued to proclaim that they had earned their wealth through their own hard work and canny investment strategies. They were blind to the link between their unearned wealth and the standing of others in the social hierarchy (Shapiro 2004). This list of factors is not exhaustive. It does not include the impact of residential segregation, discriminatory credit markets, nor macroeconomic factors that go beyond the individual. It does, however, include most of the major individual-level factors put forth by social science theories of wealth that are available for analysis in the 2013 Survey of Consumer Finances. Below, we provide an analysis that includes factors consistent with the competing and 8 Race Soc Probl (2016) 8:4–17 123 Author's personal copy complementary explanations of the racial wealth gap. First, however, we provide more details about the data and our analysis strategy. Data, Methods and Analysis Strategy The Sample The 2013 Survey of Consumer Finances (SCF) is a nationally …