Race, Gender, and Financial Well-Being
Sunday, Jan. 9, 2022 12:15 PM - 2:15 PM (EST)
- Chair: Trevon D. Logan, Ohio State University
Intersectionality and Financial Inclusion the United States
AbstractRecent estimates indicate that approximately 9 million households in the United States are
unbanked with an additional 24.5 million households being classified as underbanked. In this paper, we
focus on intersectionality, specifically the intersection of race and gender, to better understand the
probability of being unbanked and underbanked in the U.S. Additionally, we look at which drivers could
be chief contributors to this type of financial exclusion. We find that while white men and white women
have similar levels of engagement with the banking system, black women are significantly more likely than black men to be both unbanked and underbanked.
Who Do You Really Mean? At the Intersection of Race, Working Class Status, and Middle Class Attainment in Young Adults
AbstractUsing data from the National Longitudinal Study of Youth 1997 Cohort, this new research examines racial inequality in wealth in young adulthood. The analysis explores the intersection of labor force attachment and economic inequality using a wealth based definition of middle class status. Through the lens of stratification economics (Darity Jr et al. 2017), the study also includes an examination of changes in the location of the working class in the wealth distribution for Black and White young adults and an exploration of demographic sources of change in the wealth inequality among the working class. Results indicate that entry in the middle class for working class is racialized and that racialized identity is a stronger predictor of wealth attainment than occupational classifications among Black young adults.
Child-to-Parent Transfers, Social Security Eligibility and Wealth-Building among Adult Children
AbstractTransfers from adult children to elderly parents leave fewer resources for the adult children to invest in their own retirement. If the adult child cannot build sufficient wealth, they may come to depend on the next generation, and the next generation will depend on the next. This cycle of child-to-parent transfers represents an important type of poverty trap faced by many poor households. When households are stuck in a cycle of poverty, they usually require external interventions to break the cycle. Often these interventions are in the form of social and welfare policies. One such policy is social security. Social security lifts more Americans above the poverty line than any other program in the United States. By reducing poverty among the elderly, and thus reducing elderly parents’ reliance on adult children, social security may be able to interrupt the cycle of poverty between generations. Using the BLS’ NLSY mature men/women and young men/women datasets which links younger individuals to their parents, I employ a regression discontinuity approach (RD) to describe the relationships between child-to-parent intergenerational transfers (money and time) and wealth building among the child generation. The RD approach involves studying patterns of intergenerational transfers and wealth among the child generation in the years before versus after the parents reach social security eligibility age 62).
- G5 - Household Finance
- D1 - Household Behavior and Family Economics