The Role of Permanent Income and Demographics in Black/White Differences in Wealth.

We explore the extent to which the large race gap in wealth can be explained with properly constructed income and demographic variables. In some instances we explain the entire wealth gap with income and demographics, provided that we estimate the wealth model on a sample of whites. However, we typi...

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Publicado en:Journal of Human Resources Vol. 40; no. 1; pp. 1 - 31
Autores principales: Altonji, Joseph G., Doraszelski, Ulrich
Formato: Artículo
Publicado: University of Wisconsin Press Winter2005
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Role of Permanent Income and Demographics in Black/White Differences in Wealth.
      aug:
        au:
          Altonji, Joseph G.
          Doraszelski, Ulrich
      su:
        Income inequality
        Racial differences
        United States
      sug:
        subj:
          United States
          Income inequality
          Racial differences
      keyword: Race differences
      ab: We explore the extent to which the large race gap in wealth can be explained with properly constructed income and demographic variables. In some instances we explain the entire wealth gap with income and demographics, provided that we estimate the wealth model on a sample of whites. However, we typically explain a much smaller fraction when we estimate the wealth model on a black sample. Using sibling fixed-effects models to control for intergenerational transfers and the effects of adverse history, we find that these factors are not likely to account for the lower explanatory power of the black wealth models. Our analysis of growth models of wealth suggests that differences in savings behavior and/or rates of return play an important role. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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