Texas reflects the nation's Latino wealth divide
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The wealth gap between white and Latino households poses deep problems for the U.S. economy in the coming decades, according to a recent report.
Why it matters: Latinos are the fastest-growing demographic in the U.S., but have 22 cents in household wealth for every $1 held by white households.
The big picture: This could limit consumer spending, business formation and long-term growth if unaddressed.
- Latinos contribute an estimated $4.1 trillion annually in economic output in the U.S. and are projected to make up nearly 28% of the U.S. population by 2060.
- The UCLA Latino Policy and Politics Institute–UnidosUS report claims the Latino wealth gap isn't accidental but a result of decades of U.S. policy decisions that shape economic inequality today.
By the numbers: Median Latino household wealth sits at $62,000 vs. white household wealth of $284,000.
- Only 28% of Latinos have retirement accounts compared to 62% of white Americans.
- 51% of Latinos own homes vs. 73% of white Americans.
Zoom in: The disparities are also evident in Texas, where the Latino median household income is about $65,000 annually compared to $80,000 for white households, Gabriella Carmona, the report's lead author and a senior research analyst at the institute, tells Axios.
- Median hourly wages show a similar divide: $17 for Latino workers versus $26 for white workers, with noncitizen workers earning closer to $15 an hour.
- Just 18% of Latinos age 25 and older hold a bachelor's degree, compared to 42% of white Texans.
- Even with a degree, Latinos earn less than white workers due to persistent pay gaps and discrimination. In Texas, Latino college grads make about $29 an hour versus $37 for white peers.
The bottom line: "We can be productive members of society, but still face a lot of barriers when it comes to actually being able to be shareholders in wealth," Carmona says.
- "We carry the baggage of our parents, of the generations before us, of the ongoing kind of inequities that continue to be perpetuated in the system," she says.