Census Bureau News -- Gap Between Higher- and Lower-Wealth Households Widens Census Bureau Reports
Census Bureau News -- Gap Between Higher- and Lower-Wealth Households Widens Census Bureau Reports
FOR
IMMEDIATE RELEASE: THURSDAY, AUG. 21, 2014
Gap Between Higher- and Lower-Wealth Households Widens, Census Bureau Reports
Median net worth increased
between 2000 and 2011 for households in the top two quintiles of the net worth
distribution (the wealthiest 40 percent), while declining for those in the
lower three quintiles (the bottom 60 percent), according to new statistics
released today by the U.S. Census Bureau. The result was a widening wealth gap
between those at the top and those in the middle and bottom of the net worth
distribution. Each quintile represents 20 percent, or one-fifth, of all
households.
“The types of assets that
households hold may vary,” Census Bureau economist Alfred Gottschalck said. “Therefore,
business cycle changes over time may affect households differently based on
their net worth quintile and demographic characteristics.”
According toDistribution
of Household Wealth in the U.S.: 2000 to 2011 and associated detailed
tables, median household net worth decreased by $5,124 for households in the
first (bottom) net worth quintile and increased by $61,379 (or 10.8 percent)
for those in the highest (top) quintile (Figure
1). Median net worth of households in the highest quintile was 39.8 times
higher than the second lowest quintile in 2000, and it rose to 86.8 times
higher in 2011. (Figure
2).
The report also details a
widening of the wealth gap for households sharing the same demographic
characteristics, such as age, race and Hispanic origin, and educational
attainment of the householder. For example, the median net worth for non-Hispanic
whites in the highest quintile was 21.8 times higher than for those in the
second-lowest quintile in 2000; in 2011, this had increased to 31.5 times
higher. For blacks, the ratio increased from 139.9 to 328.1, and for Hispanics,
the increase was from 158.4 to 220.9.
Between 2000 and 2011, the
wealth gap has also widened between groups with different demographic
characteristics. For example, the ratio of median net worth of non-Hispanic whites
to that of blacks rose from 10.6 to 17.5 between 2000 and 2011, and the ratio
of non-Hispanic whites to Hispanics also increased from 8.1 to 14.4.
“However, when looking at
the highest quintile for these groups, we see that blacks experienced higher
relative increases in median net worth than non-Hispanic whites and Hispanics,”
Census Bureau economist Marina Vornovitsky said.
For blacks in the highest
quintile, median net worth increased by 62.8 percent to $229,041; for Hispanics
in the highest quintile, it climbed by 17.9 percent to $250,462, and for
non-Hispanic whites in the highest quintile, it rose by 11.9 percent to
$754,244.
Also released today were
tables on the median
value of debt and percent holding debt for households by various
characteristics of the householder for 2000, 2002, 2004, 2005, 2009 and 2010.
They complement similar tables for 2011 released last year.
-X-
The source of data for each of these
products was the Survey of Income and Program Participation. As in all surveys,
these data are subject to sampling and nonsampling error. For further
information on the source of the data and accuracy of the estimates, including
standard errors and confidence intervals, go to <http://www.census.gov/sipp/>. All
dollar figures are in 2011 constant dollars. Comparisons are not based on the same
households over time.
