Asian-American income growth highest among ethnic groups

Asian American households recorded the biggest income growth of any racial or ethnic group in the United States over the past decade and a half — almost 8 percent, according to figures released Thursday by the U.S. Census Bureau.

Household income for Latinos grew by nearly 6 percent over that time, while households led by non-Hispanic whites and Blacks had comparatively stagnant income growth — 3 percent and almost 2 percent respectively — over the past decade and a half.

Nationwide, median household income grew by 2.3 percent from the 2005-2009 period to the 2015-2019 period, according to the latest 5-year American Community Survey.

Economists said a lot of the difference in income growth among racial and ethnic groups has to do with the thriving job markets where Asian American and Latino-led households are concentrated — cities and communities in the West and Southwest.

“As the labor market tightened more in certain areas and in certain fields we would see more robust income growth for those groups,” Ohio State economist Trevon Logan said in an email. “Also, higher concentration in urban areas with larger job growth and increases in minimum wage can also play a role in income gains.”

While income growth has been comparatively flat in a vast majority of U.S. counties, it has been concentrated in a handful of communities, said William Spriggs, an economist at Howard University.

“So, I suspect recent Asian and Latino immigration has been to these high growth areas,” Spriggs said.

Education also played an important role, said Marlene Kim, an economist at the University of Massachusetts Boston. More than 54 percent of Asian Americans had a bachelor’s degree, the highest of any racial or ethnic group, compared to 32 percent overall for U.S. residents, according to the 2015-2019 American Community Survey.

By comparison, 35.8 percent of non-Hispanic whites, 21.6 percent of Blacks and 16.4 percent of Latinos had bachelor’s degrees.

“We are in a knowledge economy and a college education is key to getting professional jobs that pay well. Asians have the highest percentage of getting a college degree and I think you are seeing that effect,” Kim said. “Asians are more likely to be in professional and technical jobs, which are thriving and increasing their pay and income level.”-AP