BLACK WOMENOMICS

The company which did the research- Global Investment Research Division of Goldman Sachs

About the company- The Global Investment Research Division of Goldman Sachs produces and distributes research products for clients of Goldman Sachs on a global basis.

Analysts based in Goldman Sachs offices around the world produce research on industries and companies along with research on macroeconomics, currencies, commodities, and portfolio strategy.

Area of research- Positioning of Black women in the US.

Name of the organization which did the survey - The Bigger Picture (it is a publication series from Goldman Sachs Global Investment Research devoted to longer-term economic and policy issues, which complements our more market-focused analysis)

When was the research report published- March 9, 2021

The main points of discussion in the survey:

1. Confronting the Wealth Gap
2. Earnings gap
3. Education gap
4. Capital access gap
5. Personal finance gap
6. Housing gap
7. Health gap
8. Actions to invest in underinvested
9. Good for growth
10. Fairer and richer society

Findings of the survey:

1. Confronting the Wealth Gap - 

1. The Median Black households own nearly 90% less net wealth than the Median White Household.
2. Marriage rates have declined the most for black women and around 1/3 of black women aged 25-54 are single mothers.
3. The marriage rate of Americans aged 25-54 has declined since the early 60s across all groups, but especially for Black women for whom it has halved to less than 40%
4. Lower levels of earnings of Black households account for about two-thirds of the average wealth gap and three-fourth of the median wealth gap, while the remainder is explained by other factors.
5. The earnings gap drives nearly all of the wealth gap for households in the bottom third of the distribution, while other factors are more important at higher wealth levels.

2. Earnings gap - 

1. Black women are 10 percentage points less likely to be employed than white men and are paid significantly less per hour.
2. The propensity to be employed tends to fall more sharply in recessions for Black women, which is largely driven by a higher risk of job loss.
3. Black Women Are 10pp less likely to be employed than white men and are paid 35% lesser.
4. For every 100 men promoted to manager, only 58 Black women are promoted despite asking for promotions and raises at about the same rate.
5. Center-based child care is una?ordable for nearly 70% of Black working parents.
6. The wage gap of Black Women rises very rapidly in ages 20 to 35
7. Racial discrimination against Black Americans in the hiring process has not fallen over the past 25 years, with white individuals continuing to receive 36% more callbacks than Black applicants on average.
8. The growing contribution from educational di?erences to the gap with white women helps explain the widening in the wage gap in the past two decades.

3. Education gap -

1. The share of individuals aged 25-54 with at least a bachelor’s degree remains lower for Black women at around 35% as compared to white individuals.
2. While the structural factors driving the racial educational attainment gap are complex and numerous, the four contributing factors are three-quarters of underinvestment in early childhood education, Disparities in school funding and school quality, Bias in schools, more limited economic resources at home.
3. Black children start to fall behind at age 2 and the gap grows throughout childhood
4. Schools remain heavily segregated with 70% of Black students attending a school where the majority of students are non-white.
5. Black girls experience bias and discrimination in schools, including underrepresentation in gifted programs and disproportionate discipline sanctions.
6. Black Women Are One-Third More Likely Not to Have Broadband Access than White Men
7. Median net wealth is about six times lower for Black Americans with a college degree than for White Americans with a college degree (vs. ten times lower for all Black families vs. white families).

4. Capital access gap -

1. only 0.5% of single Black women own their own business, a rate that is 24 times lower than for single white men; consistent with a large entrepreneurship gap.
2. Single Black women are also 6 times less likely to own stocks than single men and nearly 50% less likely to own a home.
3. Black households are 15% less likely to own homes than white households.
4. The share of Black households with a mortgage would increase by around 10% if their credit score distribution was the same as for white households.
5. One-third of Black mortgage applicants thought that race was a contributing factor in their ability to obtain a mortgage.
6. Black entrepreneurs are 20% less likely to fund their startups with bank business loans but are instead more likely to rely on more expensive personal credit card debt and personal and family savings
7. More than three-quarters of Black and Latin women business founders cite limited access to funds or investment as a barrier to success
8. While the share of venture capital funds raised by Black women has edged up, it remains extremely low at just 0.27% in 2018-2019.
9. Black women are nearly four times less likely to inherit than single white men and that married
10. Black households are 2.5 times less likely to inherit than married white households

5.Personal Finance Gap -

1. less than 40% of Black women have the liquidity to cover three months of expenses vs. more than 60% of white men.
2. Black women are also nearly 5 times more likely not to have a bank account than White women.
3. 14% of Black adults are unbanked and 32% are underbanked, versus 3% and 11% of white adults, respectively.
4. Smaller liquidity bu?ers and more limited access to formal credit might also help explain why Black women are 5 times more likely than white men to use expensive payday loans.
5. Black women are significantly less likely to correctly answer a survey question on the compounding of interest rates than white men and they are also less likely to correctly answer a survey question on stock market risk diversification.

6. Housing gap

1. 10% of the homes occupied by Black women are inadequate—with moderate or severe deficiencies in plumbing, heating, electricity, and upkeep—or an inadequacy rate that is two times higher than white men.
2. more than one-fifth of Black women express dissatisfaction with their neighborhood due to issues related to school quality, safety, housing quality and the cost of housing
3. Among Black women in families that rent, 55% are “rent-burdened”—spending more than 30% of their income on rent—and 30% are “severely rent-burdened”—spending more than half of their income on rent
4. The share of Black women in families spending more than 30% of their income on housing is less elevated among homeowners at 25% but again significantly exceeds the corresponding share of white homeowners.

7. Health gap - 

1. While the life expectancy of Black women rose sharply from only 34 years in 1900 to 79 years and surpassed the life expectancy of white men, it remained three years lower than the life expectancy of white women in the years before the pandemic.
2. During the pandemic a decline in life expectancy of
3. 2.3 years for Black women vs. 0.7 years for white women from 2019 to 2020.
4. Black women are 40% more likely to report fair or poor health—rather than good, very good, or excellent—than white men, and 35% more likely than white women
5. Black women experience 40 pregnancy-related mortalities per 10,000 births. Their pregnancy-related mortality rate (PRMR) is more than 3 times higher than the PRMR for white women.
6. PRMR among women with a college degree or higher is more than 5 times larger for Black women compared to white women.
7. at least 60% of deaths could have been prevented by addressing access to appropriate and high-quality care, missed or delayed diagnoses, or lack of knowledge among patients and providers around warning signs.
8. Nearly half of Black women diagnosed with breast cancer die within 5 years vs. less than one in three white women.
9. Black women are nearly three times more likely to forego prescription medicine than white men and also much more likely not to see a doctor or a dentist because they cannot a?ord it.
10. One-third of Black women are not working or working less than they want due to health reasons or disability.

Questions : 

1. The report neighborhood?

1. Standard chartered
2. Global investment research
3. Societe generale
4. Synchrony

2. What is the title of the study report?

1. 5 ways of achieving financial goals
2. The race to save
3. Black womenomics
4. Digital study recap

3. What kind of services is provided by Synchrony?

1. produces and distributes research products
2. Human resource
3. consumer financial services
4. Investment policies

4. Who did the survey?

1. Standard chartered
2. Global investment research
3. The bigger picture
4. synchrony

5. When was the report done?

1. 2021
2. 2019
3. 2018
4. 2017

6.  The median black household owns nearly        % less net wealth than the median white household.

1. 60%
2. 75%
3. 50%
4. 90%

7. Black women are          % less likely to be employed than white men and are paid significantly less per hour.

1. 15
2. 23
3. 10
4. 56

8. The share of individuals aged 25-54 with at least a bachelor’s degree remains lower for Black women at around........% than for white individuals.

1. 56
2. 42
3. 35
4. 62

9. Black women are .........more likely not to have broadband access than white women.

1. 2/3
2. 1/3
3. 2/5
4. ¼

10. What % of single Black women own their own business?

1. 0.5%
2. 12%
3. 32%
4. 2%

11. Black entrepreneurs are   ....... % less likely to fund their startups with bank business loans.

1. 30%
2. 42%
3. 20%
4. 10%

12. Black households are ........ % less likely to own homes than white households.

1. 32
2. 15
3. 45
4. 62

13. Black women are also nearly ____times more likely not to have a bank account than white women.

1. 2
2. 3
3. 4
4. 5

14. Less than             % of Black women have the liquidity to cover three months of expenses.

1. 25%
2. 40%
3. 50%
4. 82%

15. ........ % Of the homes occupied by Black women are inadequate.

1. 10
2. 15
3. 23
4. 46

16. More than______of Black women express dissatisfaction with their neighborhood.

1. 2/3
2. 1/5
3. 2/5
4. 3/5

17. ______ of Black women are not working or working less than they want due to health reasons or disability.

1. 2/3
2. 1/3
3. 2/5
4. 1/5

18. Black women are_____% more likely to report fair or poor health.

1. 15
2. 26
3. 40
4. 65

19. The pregnancy-related mortality rate of black women is more than____ times higher than the PRMR for white women.

1. 5
2. 6
3. 2
4. 3

20. Centre-based child care is una?ordable for nearly _____% Of Black working parents. 

1. 20%
2. 45%
3. 62%
4. 70%