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FILE - In this 1960 file photo, Martin Luther King Jr. speaks in Atlanta. The civil rights leader had carried the banner for the causes of social justice — organizing protests, leading marches and making powerful speeches exposing the scourges of segregation, poverty and racism. Following the publication of "An Appeal for Human Rights" on March 9, 1960, students at Atlanta's historically black colleges waged a nonviolent campaign of boycotts and sit-ins protesting segregation at restaurants, theaters, parks and government buildings. (AP Photo, File)
Stacy M. Brown
Published: 14 January 2025

As the nation prepares to celebrate Martin Luther King Jr. Day, significant disparities remain between the income and employment rates of white and Black Americans. In response, WalletHub has released its comprehensive report on the “States That Have Made the Most Racial Progress,” evaluating 22 key indicators of equality across all 50 states and the District of Columbia, including median annual household income, standardized test scores, and voter turnout.

Texas tops the list as the state that has made the most racial progress, particularly in reducing health disparities and closing gaps in the business sector. Wyoming and Mississippi also show significant income levels and poverty reduction improvements, respectively. The report identifies regions with the highest and lowest disparities, noting that Hawaii has the smallest median annual income gap, while the District of Columbia has the largest.

Expert commentary within the report points to historical discrimination in housing and lending as significant contributors to racial wealth gaps. Dr. Rodney Coates of Miami University suggests that state and local authorities can help reduce these disparities through equitable funding for education and incentives for businesses to operate in economically disadvantaged areas.

WalletHub Analyst Chip Lupo stated, “Wyoming has closed the racial income gap by 42 percentage points since 1979, and Mississippi has decreased disparity in poverty levels by 27 percentage points since 1970.”

Dr. Edlin Veras of Swarthmore College adds, “The major causes of the racial wealth gap are undoubtedly tied to the legacies of slavery and white supremacy. Black people’s concerted and systematic exclusion from politics, business, education, and land ownership in the United States has long-term effects that are still evident today.”

For more detailed findings and expert insights, visit the full report on WalletHub.

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