Study: Minnesota's Racial Wealth Gap Is 3rd-Worst In Nation

MINNEAPOLIS (WCCO) -- Minnesota has the third-largest racial wealth gap in the United States, according to a new study by WalletHub.

The study analyzed 21 metrics for each state to measure the financial inequality among racial groups. WalletHub chose white people, according to them a 63% majority in the U.S., as a benchmark. After measuring various financial gaps compared to other racial groups, WalletHub chose the largest gap for each metric, then gave each state an overall score out of 100.

Minnesota's score was 64.93 -- only the District of Columbia and Wisconsin received higher scores, indicating larger gaps.

According to WalletHub, Minnesota has the second-biggest poverty rate gap in the nation at 291.78%. The state's homeownership rate gap ranks fourth-largest, while the median household income gap is fifth-largest.

The Midwest ranked poorly according to the study, with North and South Dakota, Iowa and Nebraska all among the 11 worst racial wealth gaps in the country.

WalletHub said "key factors driving the racial wealth gap include unequal access to higher education and employment for minorities, as well as residential segregation that still persists."