Definition
The percentage of individuals within specific racial groups (e.g., White, Black or African American, Asian, American Indian or Alaska Native, etc.) whose income falls below the poverty threshold.
Why It Matters
Reveals deep-seated economic disparities across racial lines, indicating systemic inequalities and the disproportionate impact of poverty on certain communities. This is critical for social justice initiatives and equitable policy development.
Specific Relevance for Professionals:
Marketers
Helps identify and understand segments with specific racial identities who are facing economic hardship, influencing the development of culturally sensitive, value-oriented products or services tailored to their needs and circumstances.
Researchers
Fundamental for studying racial inequalities in economic well-being, the effectiveness of anti-poverty programs across different racial groups, and the historical and systemic factors contributing to persistent poverty disparities.
Consultants
Crucial for advising clients on social impact strategies, diversity and inclusion initiatives, or market segments where race and economic vulnerability intersect, informing targeted community investments.
Public Policy Workers
Paramount for informing policies aimed at racial equity, targeted economic development programs for underserved communities, and ensuring equitable resource allocation to address historical and ongoing disparities in poverty across racial groups.
