A new study finds Massachusetts is the state with the 6th biggest wealth gap between races in the U.S.
To measure wealth inequality among racial groups in the U.S., WalletHub compared the 50 states and the District of Columbia across 21 key metrics.
Here is how Massachusetts ranked in some of the metrics that contributed to its ranking (1st being the state with the biggest gap).
- 3rd – Median Household Income Gap
- 4th – Poverty Rate Gap
- 9th – Homeownership Rate Gap
- 19th – Educational Attainment Gap Among People with a Bachelor’s Degree or Higher
- 25th – Educational Attainment Gap Among People with at Least a High School Diploma
Massachusetts is one of just eight states in the country where Hispanics are the most disadvantaged racial group. In 42 states and Washington D.C., the group with the largest gap between it in the top of the economic scale is black people.
The following states are those where Hispanics have the largest household income gap. Also included is the overall ranking of biggest wealth gaps, according to the study.
- Connecticut – 5th
- Massachusetts – 6th
- Rhode Island – 9th
- New York – 19th
- Texas – 31st
- Colorado – 39th
- Arizona – 4-th
- New Mexico – 43rd
Researchers conducting the study compiled the percentage differences between the racial group at the bottom of the income spectrum with the top. In all four categories, Hispanics were the most disadvantaged group.
Below are the Massachusetts percentage gap in each category followed by the worst state in each category for both Black people and Hispanics.
- Biggest Median Household Income Gap: 49.37% (MA)
- Black People: 67.39% (Washington D.C.)
- Hispanics: 46.66% (Connecticut)
- Biggest Homeownership Rate Gap: 34.88% (MA)
- Black People: 88.18% (North Dakota)
- Hispanics: 61.56% (New York)
- Biggest Poverty Rate Gap: 255.07% (MA)
- Black People: 306.35% (Washington D.C.)
- Hispanics: 272.88% (Connecticut)
- Biggest Educational Attainment Gap: 56.84% (MA)
- Black People: 68.55% (Washington D.C.)
- Hispanics: 68.22% (California)
Below are the full results from study. Included is the rank of median income for each state from highest to lowest based on data from the U.S. Department of Health and Human Services, reported in September of 2021.
For more information about the study and to review its methodology, visit Wallethub.com.
Notes:
*No. 1 = Biggest Wealth Gaps
**The “Biggest Poverty Rate Gap” category describes the poverty rate of a certain ethnicity in relation to that of white people. For example, 100% would mean twice the poverty rate of white people.
***The “Educational Attainment Gap” category in this table refers to Bachelor’s Degree or Higher.
