Depleting Capital? Race, Wealth and Informal Financial Assistance

O’Brien, Rourke

doi:10.1093/sf/sos132

Cited by 89 publications

(61 citation statements)

References 21 publications

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“…Many individuals don't save because they do not have confidence in their ability and are pessimistic about their ability to save, blaming credit card debt and impulsive spending as barriers (Bricker, Kennickell, Moore, & Sabelhaus, 2012). However, the ability to save may be more difficult for ethnic minorities because of their social networks (O'Brien, 2012). An evaluation of culturally specific financial educational materials concluded that along with important coursework content, programming should address social network members to help increase financial knowledge and management (Williams, Grizzell, & Burnell, 2011).…”

Section: Discussionmentioning

confidence: 99%

“…Previous studies have shown SES differences in social support among blacks. Compared to their white counterparts, low-income blacks are more likely to ask for financial assistance and middle-income blacks are more likely to provide financial assistance (O'Brien, 2012). Our measure of social support does not include financial assistance, and alternative types of social support were not accounted for in this study.…”

Section: Discussionmentioning

confidence: 99%

“…Yet because ethnic minority groups have been more prone to economic adversity, they may possess coping resources, family structures, family dynamics, and value systems that have traditionally served as buffers of economic stress, but remain largely unstudied; therefore, much can be learned by studying utilization patterns (Dominguez & Watkins, 2003;Gomel, Tinsley, Parke, & Clark, 1998;O'Brien, 2012). There is a considerable gap in knowledge of cultural patterns of coping with economic stress (Okafor et al, 2016;Tandon et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

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Coping with Economic Stress: A Test of Deterioration and Stress-Suppressing Models

Bartholomae¹

2017

Journal of Financial Therapy

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Coping with Economic Stress: A Test of Deterioration and Stress-Suppressing Models

Bartholomae¹

2017

Journal of Financial Therapy

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“…In addition to smaller and less frequent financial transfers, black household wealth growth is often constrained not only by lower rates of receiving financial assistance, but also by higher rates of providing assistance-financial and non-financial-to relatives in need (O'Brien 2012). This is especially true for middle-income black families, whose parents are over four times more likely to be poor than equivalent white families (Nembhard and Chiteji 2006).…”

Section: Extended Family Wealthmentioning

confidence: 99%

Wealth Mobility of Families Raising Children in the Twenty-First Century

et al. 2016

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Wealth inequality between the top and bottom deciles has grown over the last 20 years (Piketty and Zucman in Wealth and inheritance in the long run, Centre for Economic Policy Research, London, 2014), as has the racial wealth gap (Shapiro et al. in The roots of the widening racial wealth gap: explaining the black-white economic divide. Institute on Assets and Social Policy, Brandeis University, Waltham, 2013. http://iasp.brandeis.edu/pdfs/Author/sha piro-thomas-m/racialwealthgapbrief.pdf). Within these broad trends of inequality, some families are able to get ahead and grow their wealth, while others are not. Yet we do not understand well the critical variables that increase the likelihood of wealth mobility across the life course-within the same generation. This paper addresses this gap and investigates the following questions: What accounts for intra-generational relative and absolute wealth mobility for families with children in the first decade of the twenty-first century? And how does it differ by race? The paper draws on two longitudinal data sets-the Panel Study of Income Dynamics household survey data matched with neighborhood-level US Census data (1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011), and the IASP Leveraging Mobility (LM) study (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011). Applying an integrated mixed methods design, analyses are conducted in three stages: (1) A grounded theory analytic approach of the LM data determines key variables of wealth mobility: homeownership, income, employment characteristics, extended family wealth, negative life events, and neighborhood factors; (2) regression analyses test these indicators for absolute and relative wealth mobility; and (3) recontextualization through further analyses of LM data deepen the regression results by illustrating the pathways of significant wealth mobility predictors. Results reveal that increasing family income, larger family transfers, consistent long-term homeownership, and in some cases white-collar occupations increase the likelihood of upward relative wealth mobility. Negative life events, higher rates of neighborhood poverty, and black race are negatively correlated with the amount of wealth growth. These key drivers of wealth mobility highlight the need for targeted policies that reinforce and expand opportunities for all families to build wealth over the life course.

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“…Please see Gradin (2014), Hoover et al (2018), and Nau and Soener (2017) for examples of the type of work being done in this area. (Lusardi 2008) and trust in the financial sector (Choudhury 2002), and are less likely to be single parent households or provide financial assistance to extended family and friends (Chiteji and Hamilton 2002;O'Brien 2012). 3 We consider our work on the financial crisis as contributing to this larger discussion on racial differences.…”

Section: Introductionmentioning

confidence: 99%

Racial Differentials in the Wealth Effects of the Financial Crisis and Great Recession

2018

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The financial crisis of [2007][2008][2009] was arguably the most severe financial crisis in American history and the subsequent Great Recession was the worst economic downturn in the USA since the Great Depression. In this paper, we analyze data from the Panel Survey of Income Dynamics (PSID) to examine the effects of the crisis and recession on the wealth of White and Black families using graphical, cross section, and panel empirical models. While other studies have measured the short-term effects of the crisis and recession on American household wealth, we are able to look at longer-term wealth effects by incorporating data from the recently released 2015 wave of the PSID. Our results indicate that the negative consequences of the economic downturn on Black families' wealth were severe and longer-lasting than for White families.JEL Classifications D31 . I31 . J15

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Depleting Capital? Race, Wealth and Informal Financial Assistance

Cited by 89 publications

References 21 publications

Coping with Economic Stress: A Test of Deterioration and Stress-Suppressing Models

Coping with Economic Stress: A Test of Deterioration and Stress-Suppressing Models

Wealth Mobility of Families Raising Children in the Twenty-First Century

Racial Differentials in the Wealth Effects of the Financial Crisis and Great Recession

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