Speech

For Release on Delivery Thursday, May 28, 1970 7:00 p.m., C.D.T. (8:00 p.m., E.D.T.) EDUCATION, INCOME, AND WEALTH ACCUMULATION IN THE NEGRO COMMUNITY A Commencement Address By Andrew F. Brimmer Member Board of Governors of the Federal Reserve System At Booker T. Washington Business College Birmingham, Alabama May 28, 1970 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis EDUCATION, INCOME, AND WEALTH ACCUMULATION IN THE NEGRO COMMUNITY By Andrew F. Brimmer* I am flattered to have been asked to share in the ceremonies marking another year of achievement by Booker T. Washington Business College. At a time when so much rhetoric is thundering about us, you -- the members of this graduating class -- have kept your focus on the acquisition of skills which will enable you to build rewarding careers in the world of business and finance. I know how difficult it has been (in terms of both the financial burden and the challenging curriculum) for some of you to reach this point. Yet, you have borne the burden, and you have stayed the course. I congratulate all of you, and I wish you well as you set out to explore the opportunities which are opening to you on an ever-widening scale. In these troubled times (if not at any time), a graduating class certainly expects a commencement speaker to do more than bring greetings and good wishes. At a minimum, it is necessary to note that the times are troubled, that difficult obstacles hampering the nation's progress remain to be overcome, and that highly important goals crucial to the public's welfare have not been achieved. At this juncture in -Member, Board of Governors of the Federal Reserve System. I am grateful to several members of the Board's staff for assistance in the preparation of these remarks. Mr. Henry S. Terrell helped with the analysis of trends in education and income and with the assessment of relative wealth accumulation by Negro and white families. Miss Harriett Harper also assisted at several stages of the effort. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -2- the life of our nation, no commencement address can proceed very far in challenging a graduating class to go forth and tackle society's problems with hope and vigor without confronting the implacable question of the Indochina War. My own official responsibility is in the area of national economic policy, so I have no basis for a direct assessment of the impact of the war outside the economic and financial field. However, it should be obvious to anyone that the war is the single most critical issue straining the fabric of American society today. There seem to be few -- if any -- pressing domestic problems which have not been aggravated by our involvment in Southeast Asia. Not only are the military requirements consuming resources which might otherwise be available for other uses, but the pursuit of the war -- and opposition to it -- diverts the energy and imagination of some of the best minds in the country. Given the enormous agenda of unfinished business we have at home -- including the elimination of poverty and ignorance, the eradication of racial discrimination and the rebuilding of our cities -- a substantial proportion of the public clearly has concluded that this energy and imagination can be employed far more productively in the effort to cope with the pervasive ills in our own midst. Hopefully, the time will not be long before this nation can refocus its attention on its own home ground. So, while I, too, could dwell at length on the war and its consequences, I think it is also vital that we not overlook the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -3- fundamental tasks which remain before us. And for us in the Negro community (constituting more than 10 per cent of this country's population), there is no task more basic than the acquisition of skills that will enable us to enter into the mainstream of the nation's economic life. I am fully aware of the pressures on Negro youths today to give great weight to mainly cultural aspects of their lives -- at the expense of preparation to compete strongly in the market place for competence. I can understand the widening campaign to emphasize and enhance our Afro-American heritage. But at the same time, I must point out that a solid economic foundation is a necessary precondition for any culture to flourish. This is true for ethnic groups within a country as well as for the nation as a whole. Thus, as you leave college -- having earned diplomas in business administration and related areas -- it might be well to pause and reflect on the education and income experiences of the Negro community in recent years. In addition, it is illuminating to examine the relative level and pattern of wealth accumulation by Negro and white families. The Rising Quality of the Negro Labor Force Even the most casual observer of the American scene is aware of the sharp increases in the level of educational attainment of Negroes in the last decade. Yet, the considerable impact of these trends on the quality of the Negro labor force is not widely appreciated. More- over most of the focus has been on expanding college enrollment. While Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -4- the latter is undoubtedly a significant development (and I will return to it further on in these remarks), a particularly striking trend is also evident at the high school level. This, too, is of considerable importance, because the vast majority of both black and white youths enter the labor force as they leave high school. Today a much greater proportion of Negro youths join the labor force as high school graduates -- rather than as high school dropouts -- than was the case a decade ago. For example, the Census Bureau estimated in October, 1960, that 144 thousand nonwhite youths (of whom over 90 per cent are Negroes) had left high school -- but had not gone on to college or the military --• in the twelve months ending with the month of the survey. This number was divided almost evenly between graduates and dropouts -- 73 thousand and 71 thousand, respectively. (See Table la attached.) About 104 thousand of these youths had entered the civilian labor force, meaning that they were employed or actively seeking jobs. Here also the 50-50 split between graduates and dropouts was evident. Among white youths, around three- quarters of those leaving high school and not entering college were graduates, and only one-quarter were dropouts. An even higher propor- tion (80 per cent) of those entering the labor force were graduates. By 1968, (as shown in Table lc) the situation had improved markedly for Negro youths. The Census Bureau estimated in October of that year that high school graduates constituted 70 per cent of the Negro youths covered in the survey, and graduates made up 78 per cent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -5- those entering the labor force. The corresponding figures for white youth were 79 per cent and 82 per cent, respectively. Thus, the tendency for Negro students to remain in high school through gradua- tion was strengthened considerably during the decade of the 1960!s. At the stage where most black and white youths enter the labor force, the gap between the levels of education achieved by both groups narrowed appreciably -- although black students undoubtedly s t i ll lag significantly with respect to the quality of their education. On the other hand, the overall employment experience of Negro high school graduates was quite mixed during the 1960fs. They constituted a steadily rising proportion of both the labor force and employment. But they also constituted a virtually unchanging propor- tion (one-fifth to one-quarter) of those who were unemployed. This was roughly twice their proportion of the youth labor force. Thus, the reduction of youth'unemployment -- and particularly of Negro youth -- was an item of unfinished business brought over from the last decade and s t i ll remaining before us. Long-Run Trends in Education With more Negro youth remaining in school rather than dropping out, Negroes as a group have made considerable progress in both secondary and higher education. For example, between 1960 and 1969, the percentage of Negro men aged 25 to 29 who had completed 4 years of high school or more rose from just under two-fifths to three-fifths while the proportion for whites increased from just over three-fifths to about four-fifths. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -6- So while the gap had been around 27 percentage points in I960, it had narrowed to only 18 percentage points in nine years. In 1968, for the first time, a greater proportion of Negro men than Negro women aged 25-29 had completed high school. These trends are made much more evident viewed against a longer time horizon. As shown in Table 2, the younger groups within the Negro population which received their education mainly in the decade of the 1960fs, went considerably farther in both secondary and higher education than those who left school in the 1940's and earlier. By 1969, only two-fifths of those under 30 years of age had completed less than 12 years of school, while more than two-thirds of those 45 and over were in this category. Again, about two-fifths of the younger group had 12 years of schooling, compared with one-fifth for the 45-54 age group and less than 10 per cent for those in the 55-64 age range. College attendence was even more sharply concentrated among the young. About one-fifth of the young Negro adults 20-21 had 1 or more years of college in 1969, and 15 per cent of those 25-29 years of age had achieved this level. In sharp contrast, the propor- tions were 9 per cent and 6 per cent, respectively, for those 45-54 and 55-64. Nevertheless, even among young people, the disparity in education between Negroes and whites remains considerable. As shown in Table 3, the proportion of Negroes having completed 4 or more years of high school (including those with 1 or more years of college) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -7- ranged from one-quarter to two-thirds below that for whites. Again the short-fal l is greatest among the older groups. College Education Among Negroes In the case of higher education, the recent gains also have been impressive. Table 4 presents data on trends in Negro college enrollment between 1964 and 1968. In these four years, the number of Negroes in college rose by 85 per cent. What is more striking, however, is the fact that during this period, 82 per cent of this enrollment growth occurred in institutions other than the predominantly Negro colleges. Thus, in only four years, the percentage of Negro college students enrolled outside predominantly Negro colleges increased from 49 per cent to 64 per cent. This fact suggests that the larger institutions are becoming increasingly aware of minority problems and are making a concerted effort to assist minority group students. In four years the number of Negro students at these institu- tions has more than doubled. Still, the lag in college education among Negroes remains serious. Moreover, the relative gap between Negroes and whites appears to be widening -- despite the substantial progress being made by Negroes. As shown in Table 5, the percentage of college graduates among Negro adults rose from about 2 per cent in 1950 to about 4-1/4 per cent in 1968. During the same period, however, the percentage of whites in the same category increased from 6-1/2 per cent to about 11 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -8- Thus, the margin in favor of whites widened from 4-1/2 percentage points to 6-3/4 percentage points. This trend should be a matter of concern to a ll of us, because the limited number of Negro college graduates is one of the major obstacle s to increased participation of Negroes in the profes- sional and managerial occupations. In 1968, fewer than half a million Negroes had completed 4 or more years of college. While the number has edged up in the last two years, it is undoubtedly not much larger today. Here, then, is another item to add to our agenda of objectives for the decade of the 1970,s. Trends in Education and Income At this point, it might be helpful to examine the critical role of higher education in the recent economic advances of the Negro population. Table 6 presents data on the 1967-68 record of family income growth by education of the head of the family. This series is used because most tabulations prepared by the Census Bureau are for family income. At the outset it should be noted carefully that these data do not reflect precisely the contributions made to income by education because families do have income from other sources such as secondary earners and assets. However, since the earnings of the head of the family are the principal source of family income, these figures do give a representative picture. The data in Table 6 covering the 1967-68 period yield suggestive results concerning changes in the apparent returns to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -9- education for Negroes. Within this very short time horizon (one year), the median income of a Negro family headed by an individual with some college increased by 23.2 per cent, compared to a rate of growth of only 7.0 per cent for a white family headed by someone with some college education. In the short span of only one year, the ratio of Negro to white median family income for families headed by an individual with some college narrowed from .75 to .87, or by roughly one-half. Although a one-year time period is clearly too short a base upon which to make any projections, the data do indicate a strong trend towards the narrowing of Negro-white income differentials for individuals with some higher education. The data in Table 6 paint a considerably different picture of the recent economic progress of Negro families headed by someone without higher education. The growth in income for Negro families headed by someone with only elementary or high school education was not significantl y different from that of white families headed by some- one with low levels of education. Consequently, relative Negro-white income differentials in these areas failed to narrow. Among families headed by someone with only 8 years of elementary education, the percentage growth of Negro family income between 1967 and 1968 was actually slowe r than that for whites, and the ratio of Negro to white family income in this educational category declined by 3 percentage points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -10- The changing relative importance of education to Negro family income can perhaps be understood best by analyzing the incre- ments in income accruing to families headed by someone with four or more years of college education compared to someone with only a high school diploma. In 1967 median family income for Negroes with a head who had four or more years of college was 55.8 per cent higher than for a family headed by someone with only four years of high school. One year later this gap had widened to 74.0 per cent. For white families the income increment for families with a head who had four years or more of college was 42.4 per cent above those with a high school diploma in 1967, and in 1968 this gap actually narrowed slightly to 40.4 per cent. The important point from the preceding analysis should be quite obvious: the income position of Negro families headed by some- one with a college degree is moving substantially closer to white families with college degrees -- and progressively further away from Negro families headed by someone with only elementary or high school education. To further assess the returns to education for Negro families, it is useful to have a breakdown of income by age as well as by educa- tion levels -- since work experience is a very important determinant of income as well as education. Table 7 presents figures for family income in 1968 by race of head, age of head, and level of education of head. Table 7 shows quite clearly that family income increases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -11- with education and the age of the head of the family, the latter representing the returns to accumulated work experience. As in Table 6 these data show that in 1968 the ratio of Negro to white family income increases with higher levels of education. The data in Table 7, however, are particularly instructive because they show the opportunities available to young Negro families headed by someone between the ages of 25 and 34. For this young group, the expected returns from education appear to be the most impressive. When the head of the Negro family had 1-3 years of college, the family's median income was equal to 95.9 per cent of its white counter- part, a figure that might be even higher except that Negroes are s t i ll disproportionately represente d in the lower income South. Further- more, the Negro family headed by a 25-to-34 year old person with 1-3 years of college had a median income 111.1 per cent higher than a like Negro family headed by someone with only 1-3 years of high school education. For whites, however, the gap was no more than 29.6 per cent. These data show persuasively that higher levels of education move younger Negro families closer to the white levels and relatively further away from Negroes with less education. Asset Accumulation in the Negro Community Having discussed the importance of education in general in the future economic achievements of today's young Negro families, we can now turn to a matter which might be especially interesting to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -12- graduates of a college specializing in business administration. In particular, i t is instructive to examine existing data on asset accumulation by Negro and white families. Although substantial amounts have been written recently on white-Negro income differences, relatively l i t t le has been presented relating to the amount and forms of wealth accumulation of Negro and white families. Fortunately, the 1967 Survey of Economic Opportunity conducted by the Bureau of the Census for the Office of Economic Opportunity has helped f i ll this information void by collecting considerable data on family asset holdings. Before embarking upon an analysis of these data, it should be carefully noted that asset data are drawn from an individual's assessment of the worth of his assets and not from a market evaluation and thus are subject to errors of estimation. It should also be noted that individuals responding to the survey may have been unwilling to divulge the true value of their asset holdings. Table 8 presents summary data from the Survey of Economic Opportunity on asset holdings of white and Negro families. The data in Table 8 show rather conclusively that the relative wealth accumula- tion of Negro families is further from the white level than the usual observed income data. In 1966 (the comparable year of the asset data), Negro family income was roughly three-fifths (58 per cent) of the white level. However, in the case of assets, the mean accumulation for Negro families was less than one-fifth as great as for white families. These facts show that in the base year of 1966 Negroes accounted for 11 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -13- cent of the population, and earned approximately 6.6 per cent of the total famil y income. In the same year, they held about 2 per cent (or $18.3 billion) of the selected assets totaling $960.2 billion reported in Table 8. The data in Table 8 permit a further analysis of the relative structur e of asset holdings of white and Negro families. The tabulated data indicate clearly the lack of financial asset accumulation of Negro families, particularly the value of stocks. In 1966, the average estimated value for Negro families of financial assets (money in bank, government bonds, and stocks) was only $382, or 0.6 per cent of the estimated value of $5,924 for the average white family. The case of stock ownership shows a particular gap. On average, Negro families had only 1.5 per cent the accumulation in stock values as white families and accounted for roughly 0.14 per cent of the total stock values. The data in Table 8 portray a very different picture concern- ing the direct asset accumulation (housing equity, farm equity, and business equity) of white and Negro families. Equity accumulation in housing stands as the largest single asset of both white and Negro families. It represented 38,0 per cent of the assets of white families and 70.2 per cent of the assets of Negro families. Proportionately, Negro investment in housing on average is roughly one-third of the white proportion, and Negroes held approximately 3.5 per cent of the total housing equity. Clearly Negroes hold a smaller fraction of housing equity than their 6.6 per cent share in the total family income — Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -14- suggesting that Negro families on average have proportionately less invested in housing than white families of similar levels of income. The available figures on asset accumulation of white and Negro families permit a comparison of the relative importance of direct business ownership or ownership of stock as a source of wealth accumulation. This comparison suggests that one of the legacies of racial discrimination has been the encouragement of Negro acquisition of business equity serving the segregated and protected Negro markets rather than a full participation in the national economy. The data in Table 8 show that stock ownership is relatively much more important to the average white family than ownership of business equity -- while exactly the opposite is true for Negro families. In 1966, the average white family had 1.37 as much in stocks as in business equity, while this ratio for the average Negro family was only 0.24. Clearly the relative overconcentration by Negro families in business equity accumulation compared to white families has resulted mainly from the appeal of the protected market to Negro businessmen. Concluding Remarks In concluding these comments, I compliment you again for the efforts you have made to obtain an education and to acquire marketable skills at the same time. In concentrating in business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -15- administration and related areas, you have chosen a field that promises to be one of the most rapidly expanding in the 1970's. In particular, those of you with an interest in accounting can look forward to especially promising opportunities during the current decade. Over-this period, the U.S. Department of Labor estimates that some 12,000 accountants may be needed each year as replacements for those who die, retire or shift to other occupations. Perhaps the same number will be required to f i ll newly-created jobs. The outlook for bookkeeping workers is also promising. Through the 1970fs, about 75,000 employees might be needed each year to f i ll vacancies and meet expansion requirements. Business machine operators -- from those manning the simple machines to the most sophisticated electronic data-processing equipment -- will also grow substantially. Stenographers and secretaries can also look forward to expanding opportunities. Undoubtedly the use of dictating, duplicating and other office machines will continue to spread. However, these technological changes are not expected to have an appreciable impact on employment in these occupations. In 1967, about 2.4 million persons (over 95 per cent of whom were women) were holding jobs requiring stenographic skills. Moreover, some 200,000 openings for steno- graphers and secretaries may occur each year during the 1970fs. Since the turnover rate in such occupations is high, the prospects for new entrants appear to be quite good. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis -16- As I said at the outset, I have deliberately focused on the long-run outlook in these remarks. I also deliberately restricted my observations to educational and economic trends in the Negro community. But it should also be obvious that the evidence of long- run progress presented here may not foreshadow the experience for the years ahead -- unless we can cope successfully in the short-run with some of the pressing problems that currently plague us. These must include the eradication of poverty and racial discrimination and the rebuilding of our cities. But I personally would put at the top of my list the ending of the Indochina War -- which would also provide more resources with which to tackle some of our other problems. Again, you take my best wishes for the new adventures which lie before you. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table la. Labor Force Status of High School Graduates (not Enrolled in College) and Dropouts as of October of Year of Leaving High School, by Color, 1960 (Persons 16 to 24 years of age; number in thousands) High School High School Graduates as Category Total Graduates Dropouts Per Cent of Total Total j. Civilian Populatioir- 1,265 921 344 73.0 Not in Labor Force 345 215 130 62.4 Labor Force 920 706 214 76.7 Employed 774 599 175 77.5 Unemployed 146 107 39 73.1 Per cent 15.9 15.2 18.2 - White Civilian Population 1,121 848 273 75.5 Not in Labor Force 305 195 110 64.0 Labor Force 816 653 163 80.0 Employed 701 568 133 81.0 Unemployed 115 85 30 74.0 Per cent 14.1 13.0 18.4 - Negro and other Races Civilian Population 144 73 71 5500..''55 Not in Labor Force 40 20 20 50.0 Labor Force 104 53 51 51.0 Employed 73 31 42 42.5 Unemployed 31 22 9 71.0 Per Cent 29.9 41.5 17.7 - Negro as Per cent of Total Civilian Population 11.4 7.9 20.6 - Not in Labor Force 11.6 9.3 15.4 - Labor Force 11.3 7.5 23.8 - Employed 9.5 5.2 24.0 - Unemployed 21.2 20.5 23.0 - 1/ Civilian Noninstitutionalized Population. Digitized for FRASER SOURCE: U.S. Department of Labor, Manpower Report of the President, March, 1970, http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table lb. Labor Force Status of High School Graduates (not Enrolled in College) and Dropouts as of October of Year of Leaving High School, by Color, 1964 (Persons 16 to 24 years of age; number in thousands) High School High School Graduates as Category Total Graduates Dropouts Per Cent of Total Total ^ Civilian Population— 1,352 1,108 244 82.0 Not in Labor Force 337 245 92 72.6 Labor Force 1,015 863 152 85.0 Employed 803 702 101 87.5 Unemployed 212 161 51 75.8 Per cent 20.8 18.7 33.6 - White Civilian Population 1,200 997 203 83.2 Not in Labor Force 306 224 82 73.3 Labor Force 894 773 121 86.5 Employed 726 644 82 88.5 Unemployed 168 129 39 77.0 Per cent 18.8 16.8 32.2 - Negro and other Races Civilian Population 152 111 41 73.0 Not in Labor Force 31 21 10 67.7 Labor Force 121 90 31 74.0 Employed 77 58 19 75.4 Unemployed 44 32 12 72.6 Per Cent 36.4 35.6 38.6 - Negro as Per cent of Total Civilian Population 11.1 10.0 16.8 - Not in Labor Force 9.2 8.5 10.9 - Labor Force 11.9 10.5 20.4 - Employed 9.6 8.3 18.8 - Unemployed 20.8 19.8 23.5 - 1/ Civilian Noninstitutionalized Population. Digitized for FRASER http://fraseSr.sOtlUouRisCfeEd:.o rg/ U.S. Department of Labor, Manpower Report of the President, March, 1970, Federal Reserve Bank of St. Louis Table lc. Labor Force Status of High School Graduates (not Enrolled in College) and Dropouts as of October of Year of Leaving High School, by Color, 1968 (Persons 16 to 24 years of age; number in thousands) High School High School Graduates as Category Total Graduates Dropouts Per Cent of Total Total , Civilian Population— 1,490 1,162 328 75.4 Not in Labor Force 378 258 120 68.3 Labor Force 1,112 904 208 81.5 Employed 946 782 164 82.5 Unemployed 166 122 44 73.5 Per cent 14.9 13.5 21.2 - White Civilian Population 1,256 999 257 79.4 Not in Labor Force 310 224 86 72.4 Labor Force 946 775 171 82.0 Employed 818 684 134 83.4 Unemployed 128 91 37 71.0 Per cent 13.5 11.7 21.6 Negro and other Races Civilian Populatio n 234 163 71 69.5 Not in Labor Force 68 34 34 50.0 Labor Force 166 129 37 77.6 Employed 128 98 30 76.5 Unemployed 38 31 7 81.5 Per Cent 22.9 24.0 18.9 — Negro as Per cent of Total Civilian Population 15.7 14.0 21.7 - Not in Labor Force 18.0 13.2 28.4 - Labor Force 14.9 14.3 17.8 - Employed 13.5 12.6 18.3 - Unemployed 22.9 25.4 15.9 - 1/ Civilian Noninstitutionalized Population. Digitized for FRASER SOURCE: U.S. Department of Labor, Manpower Report of the President, March, 1970. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 2. Years of School Completed by Negro Adults, by Age, 1969 (Percentage Distribution) Less than Age ( 3roup 12 years 12 years 1 or more years Total of college 20 - 21 42 36 22 100 25 - 29 44 41 15 100 45 - 54 71 20 9 100 55 - 64 85 9 6 100 Source: U.S. Department of Labor, Manpower Report of the President, March 1970, Chart 16, p. 93. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 3. Proportion of Persons Who Have Completed 4 or More Years of High School, —' by Age Group and Race, 1969 Age Group White Negro Negro to White Ratio (Years) (in pe r cent) 20 to 21 82 58 71 22 to 24 81 56 69 25 to 29 77 56 73 30 to 34 73 50 68 35 to 44 66 37 56 45 to 54 59 29 49 55 to 64 45 15 33 1/ Including those with 1 or more years of college Source: U. S. Department of Labor, Manpower Report of the President, March 1970, p. 93 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 4. Negro College Students Enrolled in 1964 and 1968, by Type of Institution (Numbers in thousands) 1964 1968 Change, 1964-68 (Fall) (Fall) Number Percent Total Enrollment 4,643 6,801 2,158 46 Total Negro Enrollment 234 434 200 85 Percent total enrollment 5 6 (X) (X) Enrollment in predominantly Negro colleges 120 156 36 30 Percent of all Negroes in college 51 36 (X) (X) Enrollment in other colleges 114 278 164 144 Percent of all Negroes in college 49 64 (X) (X) (X) Not applicable. Source: U.S. Department of Labor, Bureau of Labor Statistics; U. S. Department of Commerce, Bureau of the Census; U. S. Department of Health, Education and Welfare, Office of Education Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 5. Percentage of College Graduates Among Persons 25 Years Old and Over, By Race, 1960-1968 Race 1950 1960 1964 1968 White 6.50 8.00 9.75 11.00 Negro 2.00 3.00 3.75 4.25 Difference 4.50 5.00 6.00 6.75 Source: U.S. Department of Labor, Manpower Report of the President, March 1970, Chart 23, p. 184. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 6. Median Income of White and Negro Families By Level of Education of Head, 1967 - 1968 Percentage Change 1968 1967 1967- 68 EEdduuccaattiioonn LLeevveell White Negro Ratio White Negro Ratio White Negro Elementary: Total 6,328 4,220 .67 5,832 3,838 .66 8.5 10.0 Less Than 8 years 5,589 4,016 .72 4,932 3,565 .72 13.3 12.7 8 years 7,041 5,020 .71 6,608 4,876 .74 6.6 3.0 High School: Total 9,309 6,274 .67 8,618 5,597 .65 8.0 12.1 1 -3 years 8,525 5,638 .66 7,971 4,920 .62 7.0 14.6 4 years 9,680 6,872 .71 8,962 6,403 .71 8.0 7.3 College: Total 12,356 10,704 .87 11,548 8,686 .75 7.0 23.2 1 -3 years 10,935 9,895 .90 10,277 8,027 .78 6.4 23.3 4 years or more 13,589 11,959 .88 12,770 9,979 .78 6.4 19.8 All, Head Over 25 9,179 5,450 .59 8,471 4,993 .59 8.4 9.2 SOURCE: U. S. Department of Commerce, Bureau of the Census, "Measure of Overlap of Income Distribution o f White and Negro Families in the United States,11 Technical Paper 22, Washington, D. C., 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 7. Median Income of Families in 1968 by Years of School Completed, Age, and Race of Head Elementary School High School Any College College All Education Age of Head Less Than 8 Years 1 -3 4 Years 1 -3 4 or Levels 8 Years Years Years More 25 - 34 White 5,256 6,719 7,598 8,884 10,839 9,850 11,631 9,010 Negro 3,841 B 4,473 6,499 9,950 9,443 B 5,547 Ratio 73.1 58.9 73.2 91.8 95.9 61.5 35 - 44 White 6,997 8,485 9,365 10,197 13,332 11,696 14,404 10,401 Negro 4,916 4,686 5,838 6,980 11,362 B B 6,143 Ratio 70.3 55.2 62.3 68.4 85.2 59.1 45 - 54 White 7,168 8,789 10,033 11,186 14,482 12,944 16,485 10,759 Negro 4,706 6,637 7,085 8,021 12,994 B B 6,642 Ratio 65.7 75.5 68.6 71.7 89.7 61.8 55 - 64 White 6,523 7,864 8,876 10,096 14,113 11,412 16,947 9,157 Negro 4,338 6,026 6,682 B B B B 5,207 Ratio 65.5 76.6 75.3 56.9 Over 65 White 3,639 4,308 4,882 5,809 7,747 7,028 8,573 4,746 Negro 2,775 B B B B B B 3,070 Ratio 76.3 64.7 All Families White 5,589 7,041 8,525 9,680 12,356 10,935 13,589 9,179 Negro 4,016 5,020 5,638 6,872 10,704 9,895 11,959 5,450 Ratio 71.9 71.3 66.1 71.0 86.7 90.5 88.0 59.4 Source: U.S. Department of Commerce, Bureau of the Census, "Income in 1968 of Families and Persons in the United States," Series p-60, No. 66, December 23, 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table 8. Net Asset Accumulation of White and Negro Families, Selected Assets, 1966 Mean Asset Ownership Total Asset Ownership Type of Asset Amount Per cent Amount Per cent Per cent of White (amount in billions) (Per cent) Money in Bank 2,859 16.7 294 9.7 10.3 157.8 1.8 1.1 Government Bonds 462 2.7 50 1.6 10.8 25.5 .3 1.2 Value of Stocks 2,603 15.2 38 1.3 1.5 143.6 .2 0.14 Farm Equity 2,760 16.2 311 10.2 11.3 152.3 1.9 1.2 Business Equity 1,896 11.1 212 7.0 11.2 104.6 1.3 11..22 OO Equity in Home 6,490 38.0 2,134 70.2 32.9 358.1 12.8 33..55 Total, Selected Assets 17,070 100.0 3,039 100.0 17.8 941.9 18.3 1.9 Source: Tabulated from 1967 Survey of Economic Opportunity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Andrew F. Brimmer (1970, May 27). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_19700528_brimmer

@misc{wtfs_speech_19700528_brimmer,
  author = {Andrew F. Brimmer},
  title = {Speech},
  year = {1970},
  month = {May},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/speech_19700528_brimmer},
  note = {Retrieved via When the Fed Speaks corpus}
}