Degrees but No Dollars: The Wealth Struggle for America's Most Educated Women

In recent years, the intersection of education and wealth among Black women in the United States has gained significant attention. Despite making substantial strides in educational attainment, Black women continue to face a stark wealth gap compared to their counterparts. Let's discuss the statistics and explore the complexities of this issue.

Educational Achievements

Black women have made remarkable progress in higher education:

• Among Black students in higher education, women earn 64.1% of bachelor's degrees, 71.5% of master's degrees, and 65.9% of doctoral, medical, and dental degrees. (American Association of University Women [AAUW], n.d.)

  
  

• Between 2018 and 2019, Black women made up 68% of associate's degrees, 66% of bachelor's degrees, 71% of master's degrees, and 65% of doctoral degrees earned by Black students. (American Association of University Women [AAUW], n.d.)

The Persistent Wealth Gap

Despite their educational achievements, Black women face a significant wealth disparity:

• By some estimates, Black women have approximately 90% less wealth than white men in the United States. (Caramelo & Gregory, 2023)

  
  

• The median wealth for single Black women is $200, compared to $15,640 for single white women and $28,900 for white men (Trevigne & Solis, n.d.)

  
  

• This means single Black women possess about one cent for every dollar of wealth held by single white women (Trevigne & Solis, n.d.)

Income Disparities

The wealth gap is partly driven by income disparities:

• Black women earn 64 cents for every dollar earned by white men (Caramelo & Gregory, 2023)

  
  

• Using weekly earnings data, Black women earned $611 compared to $734 for white women and $897 for white men (Trevigne & Solis, n.d.)

  
  

• This means Black women's weekly earnings are only 68% of white men's earnings (Trevigne & Solis, n.d.)

The Student Debt Burden

Higher education often comes with a significant financial burden for Black women:

• Black women have the highest average student loan debt compared to other demographic groups (Institute for Women's Policy Research [IWPR], n.d.)

  
  

• The disproportionate amount of student debt, coupled with lower wages, makes it more difficult for Black women to save and invest their money (Caramelo & Gregory, 2023)

Factors Contributing to the Gap

Several factors contribute to the persistent wealth and income disparities faced by Black women:

• Systemic racism and sexism in education, employment, housing, and healthcare

  
  

• Overrepresentation in low-paying jobs and underrepresentation in leadership roles

  
  

• Disproportionate caregiving responsibilities, often as sole or primary income earners in their households.

  
  

• Limited access to mortgages and homeownership opportunities

  
  

• The impact of historical policies, such as redlining and welfare reforms, that have disadvantaged Black women.

Potential Solutions

To address these disparities, policymakers and organizations can consider the following approaches:

• Make college more affordable and increase federal and state student aid

  
  

• Ensure pay equity and support Black women entrepreneurs through grants and mentorship opportunities

  
  

• Expand access to caregiving services and community supports

  
  

• Make mortgages more accessible and implement penalties for discriminatory leading practices

  
  

• Expand access to affordable healthcare

  
  

• Implement race-conscious policies that account for both racism and gender discrimination

Closing the wealth gap for Black women requires a comprehensive approach that addresses the root causes of these disparities. By focusing on education, employment, housing, and healthcare, we can work towards creating a more equitable society where Black women can fully leverage their educational achievements to build wealth and economic security.

By Davina Shorter (2024)

Citations

American Association of University Women. (n.d.). Fast facts: Women of color and higher education. https://www.aauw.org/resources/article/fast-facts-woc-higher-ed/

Caramelo, M., & Gregory, A. (2023). How policymakers can close the wealth gap for Black women. Urban Institute. https://www.urban.org/urban-wire/how-policymakers-can-close-wealth-gap-black-women

Trevigne, S., & Solis, E. (n.d.). Racial wealth divide snapshot: Women and the racial wealth divide. Inequality.org. https://inequality.org/racial-wealth-divide-snapshot-women/

Institute for Women's Policy Research. (n.d.). Black women’s educational access and policy solutions. https://iwpr.org/black-womens-educational-access-policy/