The State of America’s Children®

Income is the payment families receive from work or investments. Wealth is the value of a family’s accrued assets. Both measurements reflect an uneven distribution that continues putting Black and Brown children at risk.

From 1979-2019, income inequality in the United States grew by 25%.¹³ As the income and wealth gaps continue to expand and the cost of raising children increases, American families cannot keep up.

When compared to families across racial categories, Black, Hispanic, and American Indian families’ earnings are nearly half of White and Asian/Pacific Islander families.¹⁴ In 2021, the Black family’s median income lagged 11.62% behind the national average.¹⁵ American families are working harder than ever, yet their incomes are inadequate to support their families. Income and wealth gaps continue to harm low-income families and families of color, making it difficult to afford necessities and nearly impossible to build wealth. The minimum wage does not allow families to support their children without additional support.

• 1 million workers earned the minimum wage in 2020.¹⁶
• In 2020, 67% of workers earning the minimum wage were women.¹⁷
• In 2022, a minimum wage, full-time worker could not afford a two-bedroom apartment anywhere in America.¹⁸
• $39.41 an hour is the wage needed to afford necessities for 1 adult with 1 child in Washington D.C.¹⁹

Yet, average figures often mask the extreme disparities in some areas. The District of Columbia’s $132,700 median family income eclipses New Mexico’s median family income of $58,700. ²⁰ In 2021, the median income for White families was twice that of Black, Hispanic, and American Indian families.²¹ Income and wealth gaps disproportionately burden families of color, particularly in our nation’s capital, which hosts the largest equity gaps in the country. In D.C., 40% of Black children live in poverty.²² Black families in the District of Columbia earn just $48,600 or 37% of the D.C. median income.²³ These gaps are significant, leaving children and families of color further and further behind.

This inequality is not accidental. American policies and systems harbor a long and living history of excluding families of color from opportunities to build wealth. Racist housing policies like redlining, employment discrimination, the severe wage gap for workers of color, and unequal access to quality education and childcare have all contributed to America’s income and wealth inequality.

A family’s financial stability is the foundation for providing for a child’s basic needs. Without that stability, the prospects for putting food on the table, providing stable housing, clothing, and access to transportation to school or work become far more complicated—only serving to set families ever further behind. When severe income and wealth inequality persist, there are children whose core needs are unmet, compromising their ability to safely grow, learn, develop, and experience the joy of childhood.

[13] Congressional Budget Office (CBO). 2022. “The Distribution of Household Income, 2019,” p. 4. Washington, DC: CBO. The Distribution of Household Income, 2019 (cbo.gov)

[14] The Annie E Casey Foundation, KIDS COUNT Data Center. 2022. “Median Family Income among Households with Children by Race and Ethnicity.” https://datacenter.kidscount.org/data/tables/8782-median-family-income-among-households-with-children-by-race-and-ethnicity

[15] The Annie E Casey Foundation, KIDS COUNT Data Center. 2022. “Median Family Income among Households with Children by Race and Ethnicity.” https://datacenter.kidscount.org/data/tables/8782-median-family-income-among-households-with-children-by-race-and-ethnicity

[16] Bureau of Labor Statistics. (2021, February). Characteristics of minimum wage workers, 2020. https://www.bls.gov/opub/reports/minimum-wage/2020/home.htm

[17] Bureau of Labor Statistics. (2021, February). Characteristics of minimum wage workers, 2020. https://www.bls.gov/opub/reports/minimum-wage/2020/home.htm

[18] National Low Income Housing Coalition. 2022. “Out of Reach 2022.” https://nlihc.org/sites/default/files/2022_OOR.pdf; U.S. Department of Labor. “Consolidated Minimum Wage Table.” Updated as of February 5, 2023. https://www.dol.gov/agencies/whd/mw-consolidated

[19] Glassmeier, A. K. (2021). Living Wage Calculator. Massachusetts Institute of Technology. https://livingwage.mit.edu/pages/about

National Low Income Housing Coalition. 2022. “Out of Reach 2022.” https://nlihc.org/sites/default/files/2022_OOR.pdf; U.

[20] The Annie E Casey Foundation, KIDS COUNT Data Center. 2022. “Median Family Income among Households with Children by Race and Ethnicity.” https://datacenter.kidscount.org/data/tables/8782-median-family-income-among-households-with-children-by-race-and-ethnicity

[21] Ibid.

[22] U.S. Census Bureau. 2022. “2021 American Community Survey 1-Year Estimates,” Tables B17020B-I. https://data.census.gov; U.S. Census Bureau, Current Population Survey. 2022. “2021 Annual Social and Economic Supplement.” Accessed using MDAT. https://data.census.gov/mdat/#/

[23] The Annie E Casey Foundation, KIDS COUNT Data Center. 2022. “Median Family Income among Households with Children by Race and Ethnicity.” https://datacenter.kidscount.org/data/tables/8782-median-family-income-among-households-with-children-by-race-and-ethnicity. Calculations by the Children’s Defense Fund.