Racial Wealth Gap in Chicago

Racial Wealth Gap in Chicago

Nearly two-thirds (65 percent) of households of color in Chicago are "liquid asset poor" — meaning they lack enough savings to get by for three months in the event of a job loss or medical emergency — compared with 28 percent of white households, a report from the Corporation for Enterprise Development finds. Funded by JPMorgan Chase, the report, Racial Wealth Gap in Chicago (16 pages, PDF), found that 71 percent of Latino and 67 percent of African-American households were liquid asset poor; that people of color were three times as likely to be unemployed and to live in poverty as their white counterparts; and that gaps in median income between white households ($70,960) and those of color were widest for African-American households ($30,303), followed by Latino ($41,188) and Asian-American ($56,373) households. The report also found that the average business value of white-owned businesses was more than twelve times that of African American-owned businesses, with persistent residential segregation mirroring residents' income levels and neighborhoods with high concentrations of people of color having the least access to healthcare services and educational and economic opportunities, as well as the highest rates of homicides.