ABSTRACT
As the chapters of this book make evident, there are numerous ways to assess differences across racial and ethnic groups in terms of economic status, with the appropriate measure depending on the issue being examined. Analyses of labor market success often use the hourly rate of pay, while those interested in standard of living comparisons might use family income. In this chapter, we examine a measure that has been much less studied than those relating to wages and income-wealth. An examination of wealth is important for a number of reasons. The economic positions of two families with the same incomes but widely different wealth levels will not be identical. The wealthier family is likely to be able to better provide for the educational and health needs of its children, live in a neighborhood characterized by more amenities and lower levels of crime, and have greater resources that can be called upon in times of economic hardship. Thus, children who have grown up in wealthier homes will have accumulated a variety of advantages that are likely to benefit them when they enter the labor market. In addition, the ongoing debate in the United States about how political campaigns should be financed makes it clear that those with greater wealth are apt to have more influence in politics.
