A quick comparison of the mean income growth of the white and black population as well as males and females

New income data are available for 2019 and it is a good time to revise the estimates of our income evolution model. The model includes the difference (actually disparity) between genders and races observed since 1947, when personal incomes were measured the first time. Figure 1 shows the evolution of mean income (for people with reported income) since 1947 for males and females, black and white. One can see that the most recent development is the fast growth in females’ mean income since 2014. Effectively, white females ($43,315) almost caught black males ($45,103) in 2019.  The effect of 2020 pandemic is of great interest. 

In Figure 2, the male/female mean income ratio for the white and black populations is compared. In the 1940s, the ratio was high but similar for black and white people. With the increasing females’ participation rate in the 1960s and 1970s, the ratio grew to its maximum for white people but decreased for the black population. Currently, white males get 1.5 times more than white females and the rate of convergence between two genders has been deceleration since 2010. For black people, the ratio was 1.2 in 2019. 

Finally, Figure 3 demonstrates the ratio of mean incomes of white and black people. In 1950, it was 1.85. With the increasing labor force participation rate for white females between 1960 and 1980, the disparity fell to 1.4. This was mainly the effect of lower mean incomes for white females, as one can judge by the curves in Figure 1.  In 1980, the ratio was 1.38 and in 2018 reached 1.35. Effectively, the mean income of the black population is 1.35 times lower than the mean income of the white population during the last 40 years. 

 Figure 1. Mean income for four race/gender combinations.

Figure 2. The ratio of male/female mean incomes for black and white people

Figure 3. The ratio of the mean income of the white and black population.