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Race and Economic Well-Being in the United States

Author

Listed:
  • Jean-Félix Brouillette
  • Charles I. Jones
  • Peter J. Klenow

Abstract

We construct a measure of consumption-equivalent welfare for Black and White Americans, which incorporates life expectancy, consumption, leisure, and inequality. Based on these factors, welfare for Black Americans was 40 percent of that for White Americans in 1984 and 59 percent by 2022. There has been remarkable progress for Black Americans: The level of their consumption-equivalent welfare increased by a factor of 3.5 over the last 38 years when aggregate consumption per person only doubled. Despite this progress, the welfare gap in 2022 remains disconcertingly large at 41 percent, much larger than the 16 percent gap in consumption per person.

Suggested Citation

  • Jean-Félix Brouillette & Charles I. Jones & Peter J. Klenow, 2025. "Race and Economic Well-Being in the United States," American Economic Review: Insights, American Economic Association, vol. 7(4), pages 429-446, December.
    • Handle: RePEc:aea:aerins:v:7:y:2025:i:4:p:429-46
    DOI: 10.1257/aeri.20240467
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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