Black women: Truly disadvantaged in the transition from employment to retirement income

We combine labor market and class theory to explain how racial and gender income inequality endures in the transition from employment to retirement. Using data from Health and Retirement Study primary respondents who were not retired in 1992 (wave 1) but were retired in 2000 (wave 5), OLS regression and Heckman’s two step analysis indicate that: (1) black and white women earn less from employment, even after controlling for employment and marital status, educational credentials, and work experience; (2) black and white women are less likely to retire, even after controlling for employment, age, insurance, assets, and spousal employment/retirement status; and (3) after controlling for these gender diVerences in employment earnings and in retirement decisions, white women actually receive more total (Social Security, pension, and asset) income in retirement than comparable white men. Black men continue to exhibit no signiWcant (net eVect) diVerences (compared to white men), while black women continue to earn the least. © 2006 Elsevier Inc. All rights reserved.