Many families who leave welfare are losing income or not finding steady jobs at all. Extreme poverty is growing more common for children, especially those in female-headed and working families. The number of children living below one-half of the poverty line grew by 400,000 between 1995 and 1997. In 1980 in North Carolina workers in the top fifth income bracket earned 7.4 times as much as earners in the bottom fifth. In 1996 the gap had increased with the richest fifth earning 9.4 times as much as the bottom fifth.
Wealth distribution is more unequal than income distribution.
A recent study reveals, surprisingly, that white, black, and Hispanic women have similar earnings at any given educational level. The same cannot be said, however, for white men compared to minority men. There we find large earnings gaps. In other words, eliminating differences in education would diminish but would not come close to eliminating the gaps in earnings. Disparities in wealth are even sharper.