Black-White differences, but reference is made to findings and data that refer to Hispanics, Asians, and American Indians as well.

This paper focuses on three key contributions. First, an indispensable contribution to the current understanding of racial stratification is an examination of wealth, distinct from labor-market indicators, which this paper offers. Second, the paper makes an evidentiary contribution to the theory that current racial trends in inequality result, to a significant extent, from past racial policies and practices; and that the racial inequality of today, if left unattended, will contribute to continued racial stratification for the next generation. Third, by looking at new evidence concerning wealth and racial stratification, this paper contributes an impetus to push forward the research and policy agenda concerned with America’s racial wealth gap. Thus, a wealth perspective provides a fresh way to examine the “playing field.” Consequently, a standard part of the American credo—that similar accomplishments result in roughly equal rewards—may need reexamination.

Understanding racial inequality, with respect to the distribution of power, economic resources, and life chances, is a prime concern of the social sciences. Most empirical research on racial inequality has focused on the economic dimension, which is not surprising considering the centrality of this component for life chances and well-being in an industrial society. The concerted emphasis of this economic component has been labor-market processes and their outcomes, especially earnings, occupational prestige, and social mobility. Until recently, the social sciences and the policy arena neglected wealth, intergenerational transfers, and policy processes that result in differential life chances based on racial criteria. Our ongoing work attempts to redress this severe imbalance.

The data and the social science understanding are strongest for income inequality in relation to race. For most, income is a quintessential labor-market outcome indicator. It refers to a flow of resources over time, representing the value of labor in the contemporary labor market and the value of social assistance and pensions. As such, income is a tidy and valuable gauge of the state of present economic inequality. Indeed, a strong case can be made that reducing racial discrimination in the labor market has resulted in increasing the income of racial minorities and, thus, narrowing the hourly wage gap between minorities and Whites. The command of resources that wealth entails, however, is more encompassing than income or education, and closer in meaning and theoretical significance to the traditional connotation of economic well-being and access