This is the pivot table showcasing median of gross income across various ethnic groups across states.

The
graph just shows that blacks are earning the least in all of the states, and in some states, Asians are
earning biggest median salaries and in some whites. Now, we can do 2 things here. We can find why this
happens first of all? And secondly, we can think of what we can do with this?

First things first, WHAT DRIVES THIS INCOME DISPARITY AMONG STATES IN USA

There are 3 factors due to which I feel there is the most income disparity.

First one is Education. If you see across states where Asians are earning most, we can see from the data
that the proportion of Asians going to the More selective universities is more than proportion of white
people going into More Selective Universities, while Black people are mostly going to Non-Selective
Universities. We have data of all the states and ethnicities to compare, with rating of university as more
selective or non-selective.
https://www.bls.gov/opub/reports/race-and-ethnicity/2022/home.htm

Also we saw that Asians spend the most on higher education , followed by Whites, Hispanics and then
Blacks.

https://www.bls.gov/opub/btn/volume-3/do-different-groups-invest-differently-in-higher-education.htm
As we can see here, proportion of people of a particular ethnic group enrolled in selective universities
when compared with non-selective universities is most in case of White ethnic group, followed by Asian
and then followed by Blacks. This data has been averaged out from 2009 to 2017. This snip is for DC area.
If we try to map this out to the gross income trend between these ethnic groups, it shows the same
trend for the same state. In DC, Whites have the highest median income, followed by Asians and
followed by Blacks as shown below.

Second Factor for Income Disparity is Job Sector.

For reference, US Bureau of Labor Statistics published this in 2011.

https://www.bls.gov/opub/ted/2012/ted_20121026.htm

This shows that, Blacks are mostly involved in lower paying production, transportation, and material
moving jobs, while Most Asians are in second highest paying Professional and related occupations. For
the highest paying Management Jobs, Asians tie with Whites, while there are fewer Black people in
Management jobs.

https://www.bls.gov/web/empsit/cpseea20.pdf

In this dataset by Bureau of Labor Statistics, we can see that In data of 2023 and 2024 ( we can get more
for each year on this website), Whites have had 44% employed in Management, professional, and
related occupations, 10% in Natural resources, construction, and maintenance occupations, and 12.1% in
Production, transportation, and material moving occupations.

Asians are employed mostly in Management Jobs, and then secondly in Service Occupations.

This data is not by state though.

https://nces.ed.gov/programs/coe/pdf/coe_tbb.pdf

This also shows us the graphs comparing Whites, Black and Asians representation in the workforce in
different types of occupations.

Third Thing:

We can compare unemployment rate of various ethnicities in particular states and find insights on which
states has most unemployment.

https://www.epi.org/indicators/state-unemployment-race-ethnicity-2023-q1/
NOW WHAT TO DO WITH THIS?
(TAKEN FROM CHATGPT)

Addressing the economic disparities faced by Black Americans, particularly those with the lowest
incomes and home ownership rates across all states, requires comprehensive strategies that include
both governmental and private sector interventions. Here's a multi-faceted approach:

Government Interventions
 1. Affordable Housing Programs: Expand and introduce new affordable housing initiatives to
increase homeownership rates among Black Americans. This could include down payment
assistance, grants for first-time buyers, and low-interest mortgage loans.

2. Education and Job Training: Invest in education and vocational training programs that are
accessible in predominantly Black communities to improve employment opportunities and wage
potential.

3. Economic Development: Implement economic development programs that focus on revitalizing

neighborhoods with high rates of poverty, including those predominantly inhabited by Black
residents, to stimulate local economies and create jobs.

4. Policy Reforms: Reform lending practices and regulations to prevent discriminatory practices like
redlining. Ensure equal access to credit and financial services for all citizens.

5. Tax Incentives: Offer tax incentives to businesses that hire and train residents from low-income
neighborhoods, encouraging local employment and economic growth.

Private Banks Interventions

1. Financial Literacy Programs: Banks can provide financial literacy programs tailored to Black
communities to educate on saving, investing, credit building, and homeownership.

2. Fair Lending: Commit to fair lending practices and actively monitor compliance to ensure equal
access to loans and credit for Black Americans.

3. Microloans and Grants: Offer microloans and grants for Black entrepreneurs and homeowners,
focusing on those with low income, to stimulate business creation and property ownership.

4. Investment in Communities: Banks can invest in community development financial institutions

(CDFIs) and minority depository institutions (MDIs) that serve low-income and minority
communities, providing them with the capital needed to grow and lend to their communities.

General Companies Interventions

1. Diverse Hiring Practices: Implement and enforce diverse hiring practices, ensuring that Black
Americans have equal opportunities for employment and advancement.

2. Community Investment: Invest in community programs that support education, housing, and
economic development in Black communities.

3. Partnerships with Nonprofits: Collaborate with nonprofits that work towards racial equality and
economic empowerment for Black Americans, providing funding and other resources.

4. Support for Black-owned Businesses: Prioritize procurement from Black-owned businesses and
support them through mentorship and networking opportunities.

Combined Efforts

The effectiveness of these interventions is significantly enhanced when government bodies, private
banks, and companies work together in a coordinated effort. This includes sharing resources, aligning
goals, and collaboratively engaging with communities to understand and meet their needs. Building a
comprehensive support system around economic opportunities, education, and homeownership can
lead to meaningful changes in the disparities currently faced by Black Americans with the lowest
incomes and homeownership rates.

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2nd Idea by Dhairya: Location Intelligence Tool: It uses the data which we have based on education
rate, unemployment rate, category of jobs (of each community), house ownership patterns, to give
recommendations for companies to setup offices / factories and to real estate companies for investment
recommendations.

Another Idea by Dhairya: Lifestyle Analysis – we will need to find expenditure patterns by Race
for this.