SECTION 4. ECONOMIC DISPARITIES
Employment, income, and the accumulation of wealth are critical for quality of life. Substantial racial disparities in key economic indicators and predictors of life quality continue to be a serious problem for the Pittsburgh area and the nation. This section summarizes recent data on: • • • • • • Homeownership Unemployment Occupations Income Poverty Transportation

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Section 4. Economic Disparities
HomeownersHip Homeownership is an essential part of the “American Dream”. Homeownership provides many benefits to families, children, and communities. These benefits include wealth building, tax reductions, a source of equity for education and other major expenses, a stable residential population, and greater neighborhood safety. Although the number of minorities owning homes has increased over the years, the nation is still far from achieving racial parity in homeownership.
Figure 4.1. Homeownership Rates by Race and Ethnicity, 2000

100

80 60
Percent

72

75

73

60 39 34 25 20 16 43 40 38

50 36

53 46 46

40

0 Pittsburgh City Allegheny County White
Source: Appendix 4.1

Pittsburgh MSA Asian Hispanic

United States

African American

• Homeownership is lower in the city of Pittsburgh than in the other geographic areas for all of the racial and ethnic groups.

• Whites are significantly more likely than African Americans, Asians, or Hispanics to own their homes across all of the geographic areas.

• In the Pittsburgh region, Asians have the lowest homeownership rates in the city, county, and the Pittsburgh MSA. Only in the U.S. does the percentage of Asians owning homes exceed that of African Americans and Hispanics.

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Section 4. Economic Disparities
Unemployment Employment typically provides income, health and retirement benefits, and a sense of stability, satisfaction, and purpose. A lack of employment can result in serious financial, physical, and mental strain on individuals, families, and communities. Unemployment rates show the extent to which adults who are seeking work are not able to find it. In the Pittsburgh region and in the nation as a whole there are striking racial disparities in rates of unemployment.
Figure 4.2. Unemployment Rates for Men Age 16 and Over by Race and Ethnicity, 2000 20 17 16 16 15 15 15 12
Percent

11 10 8 5 5 8 8 8

7 5

4

5

0 Pittsburgh City Allegheny County Pittsburgh MSA United States

White
Source: Appendix 4.2

African American

Asian

Hispanic

• Within each of the racial/ethnic groups, male unemployment rates are higher in the city of
Pittsburgh than in the county, the MSA, and the nation.

• In the city of Pittsburgh, African American, Asian, and Hispanic men are twice as likely as
White men to be unemployed.

• African American men have higher unemployment rates than men in the other major racial and ethnic groups. In fact, in the Pittsburgh area and the nation the African American male unemployment rate is two to three times the White male unemployment rate.

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Section 4. Economic Disparities
Unemployment continued
Figure 4.3. Unemployment Rates for Women Age 16 and Over by Race and Ethnicity, 2000 20 17 14 13 11
Percent

15

13 11 9 11

10 8

10 8

10

5

5

5

5 4

0 Pittsburgh City Allegheny County White
Source: Appendix 4.3

Pittsburgh MSA Asian Hispanic

United States

African American

• Unemployment rates for White, African American, and Asian women are higher in the city of
Pittsburgh than in the county, MSA, or nation.

• Across the four geographic areas, White female unemployment rates are lower than those of other women. African American and Asian women have higher unemployment rates than White and Hispanic women in the city, county and the Pittsburgh MSA. In fact, African American female unemployment rates are often more than twice White female rates.

• Unlike the rates for women in the other racial groups, unemployment rates for Hispanic women in the Pittsburgh region are below the national average.

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Section 4. Economic Disparities occUpations The occupations of employed workers affect the quality of their jobs, particularly wages, salary, and fringe benefits. Most Americans are employed in five categories: management/professional, service, sales/office, construction/maintenance, and production/transportation. In general, management and professional positions offer higher salaries, better benefits, less physically strenuous work, and more favorable work environments than other jobs.
Figure 4.4. Occupations of Employed Civilian Population Age 16 and Over by Race and Ethnicity in the City of Pittsburgh, 2000 80 69 60
Percent

40

39 26

44 30 17 11 17 29 17 7 9 4 1 2 11 3 8 27

28

20

0 Management/Prof. Service Sales/ Office Constuction/ Maintenance Hispanic Production/ Transportattion

White
Source: Appendix 4.4

African American

Asian

Figure 4.5. Occupations of Employed Civilian Population Age 16 and Over by Race and Ethnicity in Allegheny County, 2000 80 69 60
Percent

40

39 26

41 28 14 20 12 14 8 4 1 4 29 30 25 10 12 10 5

20

0 Management/Prof. Service Sales/ Office Construction/ Maintenance Hispanic Production/ Transportation

White
Source: Appendix 4.4

African American

Asian

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Section 4. Economic Disparities
Figure 4.6. Occupations of Employed Civilian Population Age 16 and Over by Race and Ethnicity in the Pittsburgh MSA, 2000 80 67 60

Percent

40

34 26

36 28 20 15 13 13 9 4 1 5 14 13 6 13 28 30 26

20

0 Management/Prof. White
Source: Appendix 4.4

Service

Sales/ Office Asian

Construction/ Maintenance Hispanic

Production/ Trans.

African American

Figure 4.7. Occupations of Employed Civilian Population Age 16 and Over by Race and Ethnicity in the United States, 2000 50 45 40 37

Percent

30

25 22 22 14 18 13

27

27 24 23 19 13 10 7 4 13 13 21

20

10

0 Management/Prof. Service Sales/ Office Constuction/ Maintenance Asian Hispanic Production/ Transp.

White

African American

Source: Appendix 4.4

• The largest proportions of White, Asian, and Hispanic workers are employed in management and professional positions in the city, county, and the Pittsburgh MSA, and African Americans are distributed almost equally across management and professional, service, and sales/office positions.

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Section 4. Economic Disparities • Asians, much more than the other racial/ethnic groups, are concentrated in management and professional positions in all of the geographic areas. • Construction/maintenance and production/transportation positions are a relatively small proportion of the jobs in the city, county, and the Pittsburgh MSA and are largely filled by Whites, African Americans, and Hispanics.

• African Americans in the nation are employed most in service, sales/office occupations,

management/professional, and production/transportation occupations and least in construction/ maintenance occupations.

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Section 4. Economic Disparities income Income largely determines the standard of living in the Pittsburgh area where the cost of living is similar to that of most urban areas in the U.S. In the region and nation, there are striking racial disparities in income.
Dollars 60,000
51,9 0 8

4.8. Median Household Income by Race and Ethnicity, 1999

50,000
4 0 ,8 8 0 4 2 ,2 54 3 9 ,0 2 5

4 6 ,13 0

4 5,3 6 7

40,000
3 2 ,6 9 2 3 2 ,2 2 4

3 4 ,171 2 9 ,4 2 3

3 3 ,6 76

30,000
2 0 ,0 75 2 2 ,0 6 3 2 2 ,4 0 7 2 2 ,13 0 2 2 ,2 71

20,000

10,000

0 Pittsburgh City Allegheny County Pittsburgh MSA United States

White
Source: Appendix 4.5

African American

Asian

Hispanic

• In the city of Pittsburgh the median income of White households exceeds that of African
Americans, Asians, and Hispanics by more than $10,000.

• Asians have the highest median household income in the county, Pittsburgh MSA, and U.S. • Asians have about twice the median household income of African Americans in the county,
MSA and nation.

• African Americans have the lowest household income in each geographic area, and African
Americans in the city of Pittsburgh have lower median household incomes than African Americans in the other geographic areas.

• Whites in Allegheny County have a higher median household income than Whites in the city or region.

• Whites, African Americans, and Asians in the Pittsburgh area have lower median household incomes than the same racial/ethnic groups in the nation.

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Section 4. Economic Disparities income continued Total buying power for a racial or ethnic group can affect a group’s economic impact, political power, and amount of attention received from businesses, such as the types of products and services provided and advertising and marketing to the group. Aggregate income of each racial/ ethnic group is used below to measure buying power. Aggregate income is the sum of the income of all individuals age 15 and over in a given geographic area. Table 4.1. Aggregate Income for the Population Age 15 and Over in 1999 Aggregate Income in 1999 (Dollars) Total White, nonHispanic African American Asian Hispanic

Pittsburgh City 6,295,100,300 4,901,516,300 1,106,099,500 143,721,400 76,006,000

Allegheny County 28,826,174,900 25,813,110,600 2,068,733,700 547,335,100 194,716,500

Pittsburgh MSA 49,379,003,400 45,637,126,900 2,483,359,900 669,228,200 285,327,100

United States 6,074,932,742,500 4,827,736,924,300 496,091,715,700 221,976,262,700 426,780,479,600

Source: U.S. Census Bureau (2000). Summary File 3, P158: Aggregate Income in 1999 (Dollars) for Population 15 Years and Over.

• Whites have more buying power than African Americans, Asians, and Hispanics combined in the Pittsburgh area and the U.S.

• Whites in 1999 had buying power of about $5 billion in the city, $26 billion in the county, $46 billion in the region, and $4.8 trillion in the nation.

• African Americans, after Whites, in 1999 had the next largest amount of buying power: $1.1 billion in the city, $2.1 billion in the county, $2.5 billion in the region, and $500 billion in the nation.

• Asians and Hispanics have buying power of hundreds of millions of dollars in the Pittsburgh area and hundreds of billions in the nation.

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Section 4. Economic Disparities income continued
Figure 4.9. Percent of Aggregate Income for Population Age 15 and Over by Race in the City of Pittsburgh, Allegheny County, Pittsburgh MSA, and the U.S., 1999 100 90 80 78 92 79

60
Percent

40

20

18

2
0

7

1

2

1

5

8

1

1

4

7

City
White, non-Hispanic

County
African American

MSA
Asian Hispanic

U.S.

Source: Table 4.1 above.

• In the city of Pittsburgh Whites are 67% of the population and have 78% of the aggregate income while African Americans are 27% of the population and have 18% of the income. • Whites in the county and Pittsburgh MSA have at least 90% of the aggregate income while all other groups together have 10% or less. • In the nation Whites have 79% of the aggregate income while all other groups have a total of 21%.

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Section 4. Economic Disparities poverty People in poverty often lack income for basic needs, such as a nutritious diet, health care, decent housing, safe neighborhoods, high performing schools, quality child care, and reliable transportation. In spite of America’s prosperity, there are still many people -- particularly people of color -- in poverty.
Figure 4.10. Poverty Status by Race and Ethnicity, 1999 50

40 34 30
Percent

31 25 20

31 25 18 13 23

30

20 14 10 8

17

16

9

8

0 Pittsburgh City Allegheny County Pittsburgh MSA United States

White
Source: Appendix 4.6

African American

Asian

Hispanic

• African Americans, Asians, and Hispanics are much more likely than Whites to be poor. • African Americans in the Pittsburgh area and the U.S. have the highest poverty rates. In fact,
African American poverty rates in the county, region, and nation are more than three times White rates, and the African American rate in the city is more than two times the White rate.

• White poverty rates in the city are noticeably higher than White rates in the nation. White rates in the county and Pittsburgh MSA are comparable to White rates in the nation.

• Asian poverty rates in the Pittsburgh area are higher than national rates. • Hispanic poverty rates in the city are higher than in the nation while Hispanic rates in the county and Pittsburgh MSA are lower than national rates.

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Section 4. Economic Disparities transportation Transportation is important for seeking work, working, getting an education, and obtaining food, health care, and child care. Large disparities by race and ethnicity exist in the use of public transportation and ownership of a motor vehicle.
Figure 4.11. Percent of Workers Using Public Transportation to Go to Work, 2000 50

40

37 31 27

30
Percent

29 24

20

16

16 8

18 13 13 12 10

10

9

5 0 Pittsburgh City Allegheny County White
Source: Appendix 4.7

3

Pittsburgh MSA Asian Hispanic

United States

African American

• African American workers in the Pittsburgh area depend on public transportation to go to work much more than White, Asian, and Hispanic workers. In fact, African Americans are 2-5 times as likely as Whites to use public transportation to go to work in the Pittsburgh area.

• Whites use public transportation at much lower rates than the other racial/ethnic groups. • Whites, African Americans, Asians, and Hispanics in the city use public transportation more than Whites, African Americans, Asians, and Hispanics in the other geographic areas.

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Section 4. Economic Disparities transportation continued Another indicator of dependence on public transportation is the percent of households which do not own a motor vehicle.
Figure 4.12. No Vehicle Available by Race and Ethnicity, 2000 49 41 40 30 25 23 20 13 10 11 7 18 16 13 21 17 24 41

50

39

Percent

30

0 Pittsburgh City White
Source: Appendix 4.8

Allegheny County African American

Pittsburgh MSA Asian Hispanic

United States

• African Americans are more likely to be without a motor vehicle than Whites, Asians, and

Hispanics. Whites are the least likely to be without a motor vehicle. In fact, the percent of African American households without a motor vehicle in the Pittsburgh area and the nation is 2-4 times that of Whites.

• Whites, African Americans, Asians, and Hispanics in the city are much more likely not to have a motor vehicle than the same groups in the other geographic areas.

• The county and the Pittsburgh MSA have higher percentages of Whites, African Americans,
Asians, and Hispanics who do not own a motor vehicle than the nation.

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