Black Wealth/White Wealth: A New Perspective on Racial Inequality.

• Author: Grimes, Paul W.

Anyone who picks up Black Wealth/White Wealth will have their expectations raised by the numerous quotes of praise that adorn the dust-jacket and face plate of this volume. "A must read!", ". . . a landmark study . . .", ". . . an important contribution to our public debate . . .", ". . . stunningly original . . .", and ". . . a tour de force that will revolutionize our thinking . . ." are just a few of the quotes offered by notables such as Senator Bill Bradley, Barry Bluestone, and Sheldon Danziger among others. It would be hard for any empirical social commentary to live up to these words, but this book does come close.

Oliver and Shapiro are two academic sociologists, one black and one white, who investigate American racial inequality from the perspective of private household wealth. Their underlying basic hypothesis is that racial inequality has been structured through systematic barriers, institutionalized in American society and public policy over generations, which limit the accumulation of black wealth. According to the authors, these barriers include; the legacy of slavery and the reconstruction era, limited educational opportunities, redlining practices that limit access to capital, and the development of the modern suburb. Each of these, and many others, have of course been previously identified as impediments to black economic success. However, Oliver and Shapiro put a "spin" on these 'factors by tracing their effects on household wealth, and how wealth, in turn, shapes the daily lives of black Americans. The important distinction between income and wealth is evident throughout their analysis. Although this distinction is not "new" (as the subtitle would like you to believe), the focus on wealth provides an abundance of important insights into the racial divide.

Oliver and Shapiro's analysis of racial differences in wealth is based on data taken from the 1987 panel of the Census Department's Survey of Income and Program Participation (SIPP). These data are cut-up and examined in numerous ways. Alternative measures of wealth are examined across race according to numerous other factors such as marital status, level of education, type of occupation, and home-owner status. In all cases, two things are obviously clear - there is a significant gap between white and black wealth and most blacks have...