Income and Wages

Minorities Gain In Thriving Economy

Racial and ethnic minorities are enjoying a rising standard of living as the U.S. economy chalks up six years of gains, according to three recent studies. Two studies, on income and poverty, were released by the Census Bureau, while Harvard University presented findings on home ownership.

Economic prospects for nearly all households have risen and gains among minorities have in some cases reached unprecedented levels.

Here are some of the trends:

  • For the second year in a row, median household income rose -- hitting $35,492 in 1996, a 1.2 percent gain with almost the entire rise due to increases in the South.

  • In the past three years, virtually all groups -- non-Hispanic whites, blacks, Hispanics and Asian-Americans -- have seen their median incomes rise and their poverty rates drop.

  • Last year, 28.4 percent of black households were below the poverty line -- undoubtedly the lowest black poverty rate in the country's history.

  • A family of four making $16,036 in 1996 dollars is considered to be living at the poverty level.

The Harvard study showed that economic gains by minorities helped fuel the country's residential real estate boom from 1993 through 1996. The number of homeowners grew by 3.4 million households during the period -- with minority households accounting for 29 percent of the increase.

Hispanic households had a dramatic increase of 5.8 percent in median income -- the largest of any group -- reversing a decline of 5.1 percent last year, a figure Census Bureau officials now suspect was a statistical anomaly.

Not all the news was good, however. Incomes for men with full-time jobs decreased 0.9 percent last year. While growth in income for the richest 20 percent outpaced all other groups, the poorest 20 percent of households experienced an income drop of 1.8 percent. The middle 60 percent had about a 1.1 percent gain.

The number of poor Americans in 1996 totaled 36.5 million, or 14.7 percent of the population -- not statistically different from 1995's estimate.

Sources: Steven A. Holmes, "New Report Says Minorities Benefit in Fiscal Recovery," New York Times; and Christina Duff, "Household Income Rose Again in 1996," Wall Street Journal, both September 30, 1997.

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