Latino income and wealth in the U.S.

Hispanic financial conditions have been rising faster than others in part because they started lower. They are becoming part of the economic mainstream. For instance they will have a large share of home buying in the next decades.

From a McKinsey study of Latinos in America:

The share of Latinos in skilled and higher-paid occupations has increased by almost five percentage points in the past decade. Yet Latino workers are overrepresented in lower-wage occupations, underrepresented in higher-wage occupations, and generally paid less than non-Latino White workers in the same occupational categories. And the annual median wage for foreign-born Latinos ($31,700) is even lower than for US-born Latinos ($38,848)—and both are significantly lower than the annual median wage of $52,942 for non-Latino White workers.

Latino wealth has grown by an average of around 7 percent annually for the past 20 years, more than twice the rate of non-Latino White wealth. Wealth is also increasing by generation, especially from the first generation to the second.

The median wealth of Latino households in 2019 was about $36,000, just one-fifth of the median $188,200 held by their White peers.Latino families are also significantly more likely to have a zero or negative net worth. Only around 3 percent of Latino families are worth more than $1 million, compared with 16 percent of White households.

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