The Bigger Picture | March 9, 2021 BLACK WOMENOMICS Investing in the Underinvested Daan Struyven Gizelle George-Joseph Daniel Milo
[email protected] [email protected] [email protected] The Goldman Sachs Group, Inc. Goldman Sachs The Bigger Picture Table of Contents Executive Summary 3 Confronting the Wealth Gap 6 Earnings Gap 8 Education Gap 12 Capital Access Gap 15 Personal Finance Gap 19 Housing Gap 21 Health Gap 22 Actions to Invest in the Underinvested 27 Good for Growth 30 Fairer and Richer Society 31 Disclosure Appendix 32 The Bigger Picture 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. For other important disclosures, see the Disclosure Appendix. BLACK9 March WOMENOMICS 2021 2 2 Goldman Sachs The Bigger Picture ExecutiveExecutive Summary Summary 1. Black women face a 90% wealth gap. The economic and business case for diversity will only grow as US demographics and the labor force are set to become increasingly racially and ethnically diverse over the coming decades. Yet, due to complex historical factors and ongoing discrimination, Black Americans and especially Black women remain heavily disadvantaged across a broad range of economic measures, including wealth, earnings, and health. The median Black household owns nearly 90% less wealth than the median white household and the gap is even slightly larger for single Black women relative to single white men. The structural factors that have created and reinforced these economic disparities that Black women face are multifaceted and interrelated, and inevitably we neglect many important issues.