Study shows Latinos in U.S. 11 times poorer than Whites

The net worth of non-Latino white households is 11 times that of U.S. Latino households, according to a study released recently that shows the wealth gap between the two groups has widened since the latest recession. The study by the Pew Hispanic Center found that Latino households also trail whites in terms of average income, but the gap is not as pronounced as it is for average net worth. Average wealth of Latino households was slightly more than $7,900 in 2002, or just 9 percent of the $88,650 which is the average for non-Latino whites. Non-Hispanic blacks fared even worse with an average net worth of $5,900 in 2002. "Thus, the wealth of Latino and black households is less than one-tenth the wealth of white households even though Census data show their income is two-thirds again as high," the Center said in a press release. The study concluded that the 2001 recession was "much harder on the net worth of minority households," which it said are more susceptible to economic downturns. According to the center, a greater net worth enables individuals to cope better with the loss of a job, emergency home repairs, illnesses and other unforeseen expenses. While the net worth of non-Latino whites rose by 2 percent between 1999 and 2001, the net worth of Latino and non-Latino black households actually fell by 27 percent. Two factors that prevent minorities from accumulating greater wealth include "limited access to financial markets" and "greater barriers to homeownership," the latter being a major contributor to creating wealth. [more]