Income Inequality of African Americans

Topics: Race and Ethnicity, Economic inequality, Black people Pages: 7 (2273 words) Published: June 13, 2011
Racial discrimination is the main and ongoing problem in the social life of Americans. When we look at the gap of incomes between White and African Americans, we can see the inequality between these two groups. In general, whites have more annual earnings than their black counterparts in America. Lori Ann Campbell and Robert L. Kaufman emphasized that the wealth determinants, which are the indicators of socio-economic status, have effected more on Whites than Blacks. And even when society is organized, there is still some disparities on account of race and ethnicity. (Campbell and Kaufman, 2006). And income disparities between African and White Americans have definitely effected the peace of the social life. According to Campell and Kaufman to understand the inequality of wealth between African Americans and other citizens, we need to consider first how that income comes from, how it is accumulated and sended out through society. (Campbell and Kaufman, 2006).

By analysing the income, education and occupation, we can reach much more dependable outcomes of the disparity in wealth. Because these three factors are the key elements of this disparity and these elements lead to the source of the inequality of wealth. Lori Ann Campbell and Robert L. Kaufman pointed out that the outcomes of wealth inequality between Blacks and Whites is much more acute than any other economical outcomes in the society that can not be explained by the key determinants of Black and White’s that are education,occupation and income. (Campbell and Kaufman, 2006). The difference in earnings because of the racial stratification between Blacks and Whites are someting that very important for the disposition of American society. Whites annually earn 80 percent higher than their Black counterparts and also their hourly wages are almost 48 percent higher than Blacks. (Dodoo and Takyi, 2002). These numbers are clearly show that wage is the most crucial factor for the wealth of a person. Besides the occupation and earnings, education is very important and related to the wealth of African Americans. Education does not effect the income of Blacks directly but it plays a key role. Because education effects the opportunity to occupation and it effects directly the income or welfare of the people. Campell and Kaufman explain the importance of education by saying, “Education's effect on wealth should itself be mediated partly by occupation; education facilitates entry into high-status occupations likely to provide greater earnings and fringe benefits which translate into a greater potential for wealth accumulation”. (Campell and Kaufman, 2006). If we look at the analysis of the rate of education, we can see the huge distinction between blacks and whites. Blacks attain a quality education lower than whites. And it effects their fates. So these three factors which are income, education and occupation are a chain of the wealth. And the next paragraphs will analysis deeper the effects and sources of the wealth disparity between African Americans and White Americans.

Unemployment is a very big problem for countries of the world. Growing number of population and mechanization are causing much worse to this problem. Unemployment leads to lose of the income, and the absence of income triggers poverty in both a citizen and country. According to Jeremy Pais, job creates income inequality because of the importance of the role of the job and the amount of trained and capable workers required. (Pais, 2010). So unemployment is a crucial factor that must be considered by a country. Patterson describes that unemployment transmits a huge socio-economical disparity between African Americans and whites. (Patterson, 2010). He specifies also black median household income had declined by 7.8 percent in 2000, when the incomes of whites were 65 percent. And he emphasizes that black median family wealth hardly grew which was standing at $5000 in contrast to white’s...
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