When the U.S. Census released its 2015 data on income, as estimated by the American Community Survey, it gave generally positive news. Median household income in Clark County rose 4.1 percent to $64,272 between 2014 and 2015. That means half of households earn more than that and half earn less.
However, if median household income is broken down by race, it suggests this happy news hasn’t benefited everyone. Between 2014 and 2015, median household incomes dropped 5.6 percent among black or African-American households, 6.3 percent among Asian-American households, 8.5 percent among households of two or more races, and 1.6 percent among Hispanic or Latino households.
The most striking figure is this: Between 2005 and 2015, median household income among black households in Clark County dropped 21.8 percent, far more than any other race. It was estimated to be $40,861 last year — well below the overall median for all households.
Why was there such a big decline?
“The numbers are junk,” said regional labor economist Scott Bailey. “The sample is just too small to get anything reliable.”
Bailey, who works for the state Employment Security Department, points out that the Census’ estimated incomes for black households, and other minority households, have gyrated over the years. The data say that in 2005 black households earned $52,262 — nearly $2,000 more than the median income for all households that year. (This goes against national data saying that black households have consistently earned less than whites.) Then, the next year, their median income dropped to $40,668.
The sample size used in the surveys is just too small, making the margin of error significant, Bailey said. That $40,861 figure comes with a $12,878 margin of error. That means median household income may be as low as $27,983 or as high as $53,739, depending.
There are estimated to be fewer than 10,000 black people in Clark County. Neighboring Multnomah County, Ore. has more black people and a smaller margin of error for its income estimates.
About 5 percent of households in Multnomah County are black; that’s about 43,000 people out of the county’s total population of 790,294.
If the median household income among black people in Multnomah is $25,846 and the margin of error is $7,252, give or take, then that means median income could be as high as $33,098 or as low as $18,594. So, the highest income according to the estimates is still about half of what white households earn.
It’s difficult to pinpoint median household income for local minority populations. But, Bailey said, the Census is the only data his office has on race and income.
Pew Research Center says that the racial income gap persists, particularly when it comes to household wealth, or net worth. Household wealth is typically tied to home equity and black people are less likely to be homeowners. Nationally, 40 percent of black households own their home. In Clark County, it’s estimated to be about 27 percent.
Even college-educated blacks earn less than whites, according to Pew. In Clark County and nationally, black people are more likely to live in poverty. While the racial income gap is prevalent, measuring just how big that gap is in Clark County is tricky.
