The Contribution of Shareholder Primacy to the Racial Wealth Gap
February 5, 2020
By Lenore Palladino
In “The Contribution of Shareholder Primacy to the Racial Wealth Gap”, Roosevelt Fellow Lenore Palladino explores several ways of evaluating the impact of disparate equity ownership, and payments to shareholders, on racial wealth disparities. Using data from the Federal Reserve’s Distributional Financial Accounts and S&P Compustat, Palladino measures corporate equity ownership by race and ethnicity and shows how shareholder payouts have disproportionately—and increasingly—benefited white households. Palladino finds that the contribution of ownership of corporate equities to the racial wealth gap has grown over time.