Wealth is critical to families’ immediate and long-term economic well-being. It helps families pay their bills if their income drops due to unforeseen events such as a layoff or medical emergency. It also allows them to invest in their future by sending their children to college; moving to a desirable neighborhood due to, for instance, better schools; switching jobs; or starting a business. Yet wealth is highly unequally distributed in the United States—particularly by race and ethnicity. (see Appendix for more information) White families, for instance, have significantly more wealth than nonwhite families. There are a few institutions that help shrink this systematic divide; unions are one such institution.
Unions help increase the wealth for all workers. Indeed, previous Center for American Progress Action Fund research showed that a typical worker covered by a union contract has roughly twice the wealth of a typical nonunion worker. And new Center for American Progress analysis shows that unions boost wealth the most for those who are nonwhite.The above excerpt was originally published in Center for American Progress.