Fastest-rising U.S. incomes are among people of color and people without college degrees

Black households' net worth grew from $13,600 per household in 2013 to $17,600 in 2016, an almost 30% gain. Hispanic households' net worth grew 46%, from $14,200 to $20,700.
By Linda Mack | Sep 29, 2017
While all American demographic groups enjoyed some income growth in the last few years, the greatest gains appear to be among black Americans, Hispanic Americans, and Americans who lack college degrees--three groups that have historically been disadvantaged--according to newly released Federal Reserve data. The data finds that all three groups substantially outpaced whites and college graduates in boosting their personal wealth from 2013 to 2016.

Black households' net worth grew from $13,600 per household in 2013 to $17,600 in 2016, an almost 30% gain. Hispanic households' net worth grew 46%, from $14,200 to $20,700.
Federal Reserve analysts and private-sector economists said that the post-recession U.S. economy has expanded wealth among all demographic groups. More Americans have rejoined the work force post-2013 and that more than 52% of Americans have money in the stock market, according to the Federal Reserve.
Some analysts said that these trends are likely to impact lower-income groups the greatest. Their relatively smaller incomes means that even a small increase in wealth could make a big difference to them, they explained: By contrast, while white households' net worth grew only 17%, that resulted in a median white household income of $171,000 per household in 2016.
"White households had a head start in rebuilding wealth relative to black and Hispanic households," said Valerie Wilson, director of the Economic Policy Institute's program on race, ethnicity, and the economy. "Black and Hispanic households see larger percentage gains simply because they were starting from a lower level."
At the same time, some opportunities for high-school graduates to boost their incomes may be rising, too. The median net worth for Americans who have only high-school diplomas grew nearly a quarter to $67,100. A driving factor may be construction and other sectors that are hiring high-school graduates, analysts said.

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