Wealth, Union Formation Divide, and Cohort Changes

• In Event: 1448 - Race, Gender, and Class Variations in Union Formation

Abstract

In the past few decades, the racial gap in marriage rates is gradually widening, while cohabitation rates of Non-Hispanic whites surpass that of Non-Hispanic blacks and continue to increase. Meantime, the racial divide in net household wealth is continually expanding. Using data from the National Longitudinal Survey of Youth 1979 and 1997 cohorts, this study examines whether the widening racial gap in marriage is driven by the widening racial gap in personal wealth or by the increase in the racial differences in the effects of wealth. Furthermore, this study also investigates the associations between individual wealth differences by race and racial divide in cohabitation in both cohorts. The preliminary results show a narrowing racial gap in assets ownership (e.g., vehicle, bank account, and financial investment) but a persistent racial gap in homeownership among the unpartnered. In terms of debts, results observe a widening racial gap in student loan holding, a narrowing racial gap in vehicle debts, but a persistent racial gap in home debts. Furthermore, the results also reveal a persistent (if not increasing) racial gap in home net wealth, home net worth, and vehicle net worth among the unpartnered. These results indicate that both the changing racial gap in personal wealth and the increasing racial differences in wealth effects contribute to the growing union divide by race.

Author

• Yang Zhang, University of Michigan