The Large Gap in Stock Market Participation Between Black and White Households

Abstract

between White and Black households. Using the newest Survey of Consumer Finance (SCF) data, Bhutta et al. (2020) report that both the median and mean wealth of Black families are each less than 15% of those of White families. In addition, Kent and Ricketts (2021) use the same SCF data and further point out that Black families are much less likely to own various assets, such as homes, businesses, and financial and retirement assets, which implies that the participation rates for various financial vehicles could vary significantly across races.