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Racial and Ethnic Disparities in Income Inequality among Children in the United States

Sat, August 11, 10:30 to 11:30am, Philadelphia Marriott Downtown, Floor: Level 5, Salon G

Abstract

Despite extensive research on the rise in inequality among U.S. families with children and child poverty, prior work has not systematically examined changes in children’s relative resources. This in spite of the well-documented connection between parent economic resources and the transmission of intergenerational (dis)advantage. Using federal tax data matched to detailed U.S. Census Bureau race and ethnic identifiers, this study examines two facets of child inequality. First, it considers point-in-time differences and trends in child income across racial and ethnic categories. Second, it analyzes the relationship between three prevailing influences and child resource gaps across race/ethnic groups. I find evidence of pervasive – and growing – inequality, with White and Asian children commanding on average nearly twice the resources of Blacks. Cross-sectional decomposition and fixed effects regression results suggest family structure and primary parent age are positively related to child inequality, but that household employment ameliorates inequality. This research takes a critical step in bringing children into the focus of research on rising inequality.

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