|Title||Self-employment and Wealth Disparities between Black and White Households Approaching Retirement|
|Year of Publication||1999|
|Authors||Daeumer, R, Hayward, MD|
|Institution||The Pennsylvania State University, Population Research Institute WP 99-17|
|Keywords||Demographics, Employment and Labor Force|
This article examines the role that self-employment and wage/salary employment play in determining racial disparities in wealth among persons approaching retirement. Findings indicate that black households exclusively linked to the labor market via selfemployment are the worst prepared financially for retirement. White self-employed households also suffer from a lack of liquid assets, although they have accumulated the most wealth when housing equity and real assets are taken into consideration. Inheritances do not constitute the principal basis of the wealth advantages they enjoy but do reinforce wealth inequality. The results suggest that choice in terms of retirement timing and labor supply decisions is much more a characteristic of white self-employed persons than of their black counterparts. Self-employed blacks will also heavily depend on Social Security during retirement and on the pension wealth of a wage/salary spouse, if married.
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