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The Black and white differential in income and consumption dynamics

Author

Listed:
  • Giacomo Giorgi

    (GSEM-University of Geneva
    BREAD, CEPR, IPA)

  • Luca Gambetti

    (Universitat Autònoma de Barcelona, BSE
    Università di Torino
    Collegio Carlo Alberto)

  • Costanza Naguib

    (University of Bern
    GSEM)

Abstract

With 20 years of PSID data, we document persistent racial differentials in consumption dynamics. Starting from similar positions in the consumption distribution Blacks end up in lower percentiles than Whites. Education, income, and wealth are three key drivers of these different dynamics. Blacks tend to save less, and hence have less buffer than the Whites to prevent them from falling in the lower part of the consumption distribution.

Suggested Citation

  • Giacomo Giorgi & Luca Gambetti & Costanza Naguib, 2024. "The Black and white differential in income and consumption dynamics," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 981-997, December.
    • Handle: RePEc:spr:joecin:v:22:y:2024:i:4:d:10.1007_s10888-023-09618-1
    DOI: 10.1007/s10888-023-09618-1
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    References listed on IDEAS

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