why does socio-economics play such an important role in terms of its contribution to inequality
Socioeconomic status
The wealth gap , like income inequality , is very large in the United States . There exists a racial wealth gap due in part to income disparities and differences in achievement resulting from institutional discrimination . According to Thomas Shapiro , differences in savings ( due to different rates of incomes ) , inheritance factors , and discrimination in the housing market lead to the racial wealth gap . Shapiro claims that savings increase with increasing income , but African Americans can not participate in this , because they make significantly less than Americans of European descent ( whites ) . Additionally , rates of inheritance dramatically differ between African Americans and Americans of European descent . The amount a person inherits , either during a lifetime or after death , can create different starting points between two different individuals or families . These different starting points also factor into housing , education , and employment discrimination . A third reason Shapiro offers for the racial wealth gap are the various discriminations African Americans must face , like redlining and higher interest rates in the housing market . These types of discrimination feed into the other reasons why African Americans end up having different starting points and therefore fewer assets .
The wealth gap , like income inequality , is very large in the United States . There exists a racial wealth gap due in part to income disparities and differences in achievement resulting from institutional discrimination . According to Thomas Shapiro , differences in savings ( due to different rates of incomes ) , inheritance factors , and discrimination in the housing market lead to the racial wealth gap . Shapiro claims that savings increase with increasing income , but African Americans can not participate in this , because they make significantly less than Americans of European descent ( whites ) . Additionally , rates of inheritance dramatically differ between African Americans and Americans of European descent . The amount a person inherits , either during a lifetime or after death , can create different starting points between two different individuals or families . These different starting points also factor into housing , education , and employment discrimination . A third reason Shapiro offers for the racial wealth gap are the various discriminations African Americans must face , like redlining and higher interest rates in the housing market . These types of discrimination feed into the other reasons why African Americans end up having different starting points and therefore fewer assets .