Race Matters: Income Shares, Income Inequality, and Income Mobility for All U.S. Races

Using linked administrative tax records, census data, and American Community Survey data covering the universe of U.S. income tax filers between 2000 and 2014, this study examines income inequality and mobility across racial and ethnic groups. The authors document substantial differences in average incomes, within-group inequality, and intergenerational mobility. White and Asian Americans have the highest average incomes, the greatest within-group inequality, and the lowest within-group mobility, while Black, American Indian, and Hispanic populations exhibit lower incomes and face greater risks of downward mobility. The study finds that income inequality increased within all racial and ethnic groups during the period, with particularly large increases among White Americans. The findings highlight the persistence of racial stratification in the U.S. income distribution and underscore the role of race in shaping economic opportunity and mobility.