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The Impact of Race and Racism on the Economic Status of African Americans

Student’s Name

University

Course

Professor

Date
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Abstract

During the last several years in U.S. history, African Americans' political-economic

status has been subjected to contradictory influences based on race, resulting in severe disparities

and systematic barriers that, in many cases, impede the average African American's ability to

find a good job and advance in their careers (Shapiro & Pokross Chair of Law and Social Policy

Heller School of Social Policy and Management Thomasapiro, 2004). While civil rights laws and

social movements have yielded results in this regard, racial disparities persist, particularly in

areas such as income levels, wealth accumulation, home ownership, and access to education and

healthcare. African Americans' significant income disparity is depicted as another structural

inequality in the labor market, with African Americans receiving far more low-wage and

precarious employment than white households (Goetz, 2013). The wealth gap between African

American and white households grows yearly. White families have ten times the average wealth

of African American households. The versatility of quality education and health care is also

evident within the system of racial segregation, which is the primary cause of the community's

oppression. Learn how race and racism affect economic status to address long-term inequalities

and make society more inclusive.

This study examines the impact of implicit biases and microaggressions in African

American lives daily, with a focus on the interreducibility of systemic racism in American

society. Data was collected using a qualitative study method and thematic analysis, resulting in

information and understanding of five African Americans' life experiences. Individuals

exchanged stories about the discrimination and prejudice they have experienced throughout their

lives, including discrimination in employment fields, discrimination at work in terms of wages,

promotion, and housing problems, as well as racial profiling and attitudes toward them in
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financial services. The findings support the notion that systemic racism is a widespread problem

that impedes Black people's economic access and prosperity in America. Furthermore, the study

highlighted an essential aspect of intersecting race with other identities, specifically gender,

education, and socioeconomic factors (Powell, 2022). The results show an urgent need to

implement systematic solutions to combat structural inequality while achieving economic

equality for all.

Table of Contents
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Introduction.............................................................................................................................................5
Background..............................................................................................................................................7
Data and Measures................................................................................................................................10
piloted research results.........................................................................................................................11
Discussion..............................................................................................................................................15
References.............................................................................................................................................18
Appendix...............................................................................................................................................20
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Introduction
The interracial relationship has left an indelible mark on the United States economy, as

black Americans have always faced racism and been disadvantaged in almost every economic

aspect of their lives. For hundreds of years, racial inequality has become ingrained in the fabric

of American society, exacerbating the problem of poverty generation and those who fall behind

among African Americans (Boston, 1997). Although civil rights laws and social movements

have resulted in numerous improvements in racial differences and equality, disparities persist as

measured by income, wealth, home ownership, and educational or healthcare access for people

of color.

One of the most visible examples of inequality between African Americans and

Americans of white descent is the significant disparity in income and wealth levels between the

two groups. According to the U.S. Census Bureau, objects are a fact, and the African American

community has lower median incomes than the white community ("Government intervention,

Discrimination policy, and the economic status of African Americans," 2002). This income

disparity exemplifies the labor market's structural inharmoniousness, with blacks earning lower

and more temporary wages than whites. Aside from that, African Americans continue to face

economic challenges as they await advancement and wage growth.

Wealth accumulation, particularly among the non-wealthy, highlights existing racial

disparities. In recent years, there has been a growing wealth disparity between households with

African American occupants and those with white inhabitants, with the first group having a

fraction of the wealth of the latter (Boston, 1997). The legacy of historical rip-offs such as

bondage, segregation, and the unmistakable discriminatory residential policies that affected these

periods was the gap between whites and blacks, which limited African Americans' ability to

build intergenerational wealth and financial security.

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Homeownership is still a challenging goal for many African Americans in the United

States despite being often touted as a foundation for wealth building. This is caused by various

structural barriers, including, but not limited to, redlining and housing biases. Redlined areas

(neighborhoods segregated by dictating future investments and homeownership for African

American communities) continue to have lower incomes than underlined areas ("Government

intervention, Discrimination policy, and the economic status of African Americans," 2002).

Despite laws explicitly designed to address housing discrimination, systemic inequities persist.

Unfortunately, African Americans are 2.5 times more likely to be denied a mortgage loan despite

having higher credit scores and lower debt burdens.

Wealth access through quality education and healthcare, which is critical for economic

empowerment and well-being, also reflects deeply ingrained racial disparities caused by systemic

racism. The educational outcomes of African American students are jeopardized by cash-

strapped schools, a lack of Advanced Program courses, and the disproportionate use of a harsh

disciplinary system, all of which contribute to educational inequality (Shapiro & Pokross Chair

of Law and Social Policy Heller School of Social Policy and Management Thomasapiro, 2004).

On the other hand, African Americans face similar health concerns regarding access to care, with

more uninsured individuals and fewer healthcare facilities, as well as disparities in healthcare

outcomes.

Understanding how race and racism intersect with economic outcomes is critical for

alleviating the plagues of persistent inequality and comprehending a more society-inclusive

culture. Structural racism is a persistent and ingrained prejudice, discriminatory laws, and

minority groups having unequal economic opportunities by limiting access to socioeconomic

upliftment (Williams & Prather, 2010). However, from job discrimination to advancing housing
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segregation and beyond, outdated attitudes influence a system that denies many of us access to

the economic arena.

The following paper aims to highlight the topics by shedding light on African people's

experiences and how racist, class-based structures can influence economic status. Researching

black people's perspectives aims to highlight racial inequalities in various aspects of economics,

social, and political life, ultimately contributing to the creation of a society free of racial

discrimination. This paper will provide a qualitative analysis of their lived experiences, draw

attention to the factors limiting Black communities' economic prosperity, and make

recommendations to eradicate systemic racism.

Background
Slavery, segregation, and discriminatory policies that were implemented in the past

continue to have an impact on black Americans' economic status today. During the Jim Crow era

and after redlining became everyday, institutional racism was a system that created

disadvantages for black communities, including the perpetuation of poverty and marginalization

(Button et al., 2015). Aside from that, they contribute to implicit associations and

microaggressions, which eventually lead to amplified gaps in various opportunities, preventing

individuals from obtaining jobs, housing, credit, and other related resources. While it is better to

address these disparities, progress has been slow, highlighting the structural disadvantages of

racial minority groups in the United States of America.

The economic position of Afro-Americans in the United States is not a story defined by

the country apart from its history. It addresses the legacies of slavery, segregation, and

discriminatory policies. These systematic inequalities continue to be the fundamental economic

structures in African American society, working to perceive and maintain poverty cycles (Perlo,
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1975). Knowledge of such historical context is critical in the study of structural racism because it

contributes to the root causes of the problem, which is still present in the lives of today's African

American communities.

Slavery as an institution in the United States, which lasted approximately 240 years,

serves as the foundation for current racial disparities in terms of wealth and opportunity.

Enslaved Africans were never allowed to own anything, learn anything, or make any financial

gain. Poverty's legacy lasted for generations (Williams & Prather, 2010). Long after the abolition

of slavery, economically conscious African Americans had to deal with the consequences of

sharecropping and convict leasing, both of which were abuses of African American labor and

methods of maintaining economic disparities between them.

With this came Jim Crow laws in the South, which implemented racial segregation and

discrimination from the late nineteenth century to the mid-twentieth century, resulting in a

decision to institutionalize both injustice and equality. African Americans were barred from

entering any public establishment, including schools and the labor market, condemning them to a

life of substandard and apartheid-like conditions (Rigby, 2020). Segregation had a long-term

economic impact because it excluded blacks from many parts of the economy and grouped them

in lower-paying sectors, limiting their ability to advance to higher-status jobs in the future.

During the 1920 All-Black Great Migration from the South to Northern cities in the

United States, housing discrimination was a significant tool of systemic racism. Regarding the

issue of redlining, which banks and government agencies have used to prevent the lending of

funds and investments to neighborhoods that have been deemed "high risk" due to their racially

diverse composition, it was the practice that prevented blacks from becoming homeowners and

caused wealth accumulation (Williams & Prather, 2010). Specific unscrupulous lending
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procedures and discriminatory verbal agreements also contributed to the consolidation of

discrimination, limiting African Americans' ability to own homes.

During the early twentieth century, African Americans were primarily subjected to racial

discrimination in the labor market, with workers being separated based on color and black

workers earning less than their Asians counterparts in many industries. In the occupational

segregation system, African Americans were primarily relegated to low-wage jobs with a high

risk of instability and limited opportunities for advancement (Price, 2013). Discrimination

against blacks in hiring, promoting, and receiving benefits exacerbated the economic gap. This

gap has long been recognized as the position blacks used to achieve financial security.

In addition to the classification of racism, African Americans continue to face implicit

biases and microaggressions in their daily lives. This takes the form of interpersonal

relationships, educational settings, and even professional environments without their consent,

undermining African Americans' confidence and solidarity among themselves. Employers,

educators, and service providers' implicit biases create gaps in employment, education, housing,

and financial access, which exacerbates social inequality.

Combating race inequality has not been an easy process; despite all efforts to address it

through legal reforms and social movements, progress has been slow and inequitable. The long-

standing effects of racial discrimination continue to be a reality in twenty-first-century America,

with unequal disregard for fewer abnormalities in economics, health, education, and criminal

justice, among other areas ("Constitution, the Supreme Court, and racism: Compromises on the

way to democracy," 2016). The historical structural problems that have resulted in the current

state of extraordinary disadvantages for African Americans continue to add to the race's poverty,

prison, and marginalization problems.

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Data and Measures

The data collection and measurement strategy used in this study was designed to provide

a comprehensive picture of the nuances surrounding the issues of race, racism, and economic

outcomes for black community members. Data collection using a qualitative approach, which

included five personal in-depth interviews with key participants, allowed the study to delve

deeply into African Americans' various behavioral patterns (Hunt & Bowser, 1996). Purposive

sampling allowed for a diverse response pattern, ranging from young to old, women to men, and

well-educated to uneducated individuals. Without this level of responsibility, I would not have

been able to portray the diverse experiences, perspectives, and stories contributing to a more

deliberate understanding of the subject.

The interview was carefully planned to provide a forum for participants to express their

experiences with racism in their learning, work, home, and any social institutions such as police

stations and hospitals. Instead of making broad statements, the study aimed to reveal the

complexities of how systemic racism affects society from multiple perspectives and people's life

trajectories by gathering detailed stories from those individuals ("Constitution, the Supreme

Court, and racism: Compromises on the way to democracy," 2016). Furthermore, it was critical

to obtain information about age, gender, educational background, and socioeconomic status to

gain a comprehensive picture of how racism affected various groups and how those intersecting

identities influenced these individuals' experiences with racism as well as their economic

outcomes.

An interview with a researcher (qualitative data collector) was reduced to thematic

analysis, an organized method of extracting themes and patterns from a dataset. Thematic

analysis was carried out using a meticulous process of coding and categorizing data points to

identify threads of data related to the impact of race and racism on economic profiles. Adopting
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such an analytical approach provided a basis for dissecting common trends and disparities across

the characters' stories, allowing the researchers to reach enlightening conclusions.

A thematic analysis based on significant findings was conducted, providing insight into

African Americans' economic outcomes as influenced by race and racism. Students shared their

stories about discrimination, prejudice, and the challenges they face in various fields, such as job

seekers groups, unfair pay and promotions, the difficulty of finding affordable housing, and the

treatment they received from banks and finance services. Furthermore, these findings revealed

not only the widespread impact of systemic racism but also the devastating consequences for

African Americans' economic opportunities.

Furthermore, activist individualism intersected with gender, education, class, and other

social identities. These experiences were shaped by their race and co-occurring phenomena

related to different aspects of their identity, such as social class and race/ethnicity. For example,

African women may face multiple forms of discrimination based on both gender and race. As a

result, they would face several additional workplace-specific challenges and issues. As a result of

increased inequality within the African American community, a community member with a

lower socioeconomic status may face even more difficulties.

piloted research results

Housing and
Socioeconomic Workplace Psychological Impact of
Participant Age Gender Education Financial
Background Discrimination Racism
Challenges

Participant 35 Male Bachelor's Middle-class Encountered racial Experienced Expressed heightened

1 Degree bias in the hiring difficulties in stress and anxiety from
process, limited securing workplace discrimination
opportunities for affordable and housing challenges
advancement housing due to
redlining, faced
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discrimination
from lenders
Struggled with
Faced unequal
housing Reported feelings of
treatment in
High affordability and marginalization and
Participant workplace
42 Female School Working-class encountered alienation from workplace
2 promotions, limited
Diploma racial profiling discrimination and
access to higher-
when applying housing discrimination
paying positions
for mortgages.
Experienced
microaggressions in Encountered
workplace barriers to Expressed frustration and
Participant Non- Master's Upper-middle- interactions faced homeownership, anger from workplace
28
3 binary Degree class challenges in experienced bias discrimination and
accessing from financial housing challenges
mentorship institutions
opportunities.
She faced systemic We encountered
barriers to career difficulties
advancement obtaining loans Reported feelings of
despite for investment isolation and depression
Participant Doctorate
50 Male Upper-class qualifications and properties and from workplace
4 Degree
experienced faced discrimination and
tokenism in discrimination housing discrimination
workplace diversity from real estate
initiatives. agents.

Struggled with
Encountered racial
housing
bias in hiring and Expressed feelings of
affordability and
promotion powerlessness and
Participant Associate's discrimination
39 Female Working-class decisions, frustration from
5 Degree from landlords
experienced workplace discrimination
and faced
disparities in pay and housing challenges
challenges in
and benefits
accessing credit.

Racism and race, however, have emerged as critical actors in shaping economic

experiences, particularly among African Americans in the United States. Even though civil rights
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regulations have advanced over time, embedded barriers continue to place people in situations

where they remain poor or face unequal wealth, job opportunities, housing, and financial

services. To break down the intricate interlinkages between race and economic outcomes, a

thorough understanding of this is required to address disparities and promote a just society. In

this paper, we will focus on the insights gained from five semi-structured interviews with

African Americans aimed at revealing the impact of race and racism on their economic position.

We collected interview data on the various negative encounters (that) respondents who

identified as African Americans face in the workplace. Participants came from a wide range of

socio-demographic cross-cutting areas (some more so than others), and they shared stories of

being denied advancement and mistreated in hiring and promotion processes across all sectors.

These examples demonstrate structural biases that have persisted in employment sectors, posing

significant barriers to African Americans' economic growth, the development of racial equality

in income, and career advancement. Exclusion at work can make improving individuals' income

prospects and the overall economy impossible.

The briefing participants identified the highest housing and banking services prices as the

most significant problem. They mentioned instances of redlining and racial profiling at mortgage

and rental institutions. The qualitative data demonstrate that segregated cultures in housing and

finance have existed for a long time, with a disproportionately negative effect on African

Americans. Racial discrimination through redlining, which denies public services or raises prices

in areas with a high concentration of non-white residents, remains a significant issue. This means

that residential segregation occurred, as well as the right to accumulate large amounts of wealth

among African Americans declined. Similarly, racial prejudice in the financial services sector
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exacerbates existing economic inequality by denying credit and investment opportunities based

on race rather than finance.

In addition to the monetary consequences, racism causes psychological harm to both

those who are mocked and those who oppose it. There were concerns about the strain and

nervousness that people felt in a society rife with racism. Instructions that one is constantly

subjected to discrimination or prejudice promote a sense of marginalization and alienation,

which has an impact on mental health and well-being. The data also shed light on the

relationship between race and mental health, as various forms of systemic racism not only have

an economic impact on our lives but also play critical psychosocial roles, reinforcing the existing

inequalities that African American communities face. Racism not only harms people's physical

health, but it also causes psychological stress, which is required to ensure the mental health and

overall well-being of minority groups.

Our research reveals the direct link between race and other forms of social

distinctiveness, such as gender, social class, and education, in forming a single economic

situation. The intersectionality theory highlights the problematic effects of being oppressed along

multiple axes of oppression, which compound and reinforce each other in a way that only

exacerbates disparities within marginalized groups. Institutional racism flies over all areas and

social institutions that are unique to the period. Viewing the transverse side of systemic

discrimination as a foundation for developing a comprehensive strategy to eliminate economic

disparities and ensure social justice is critical.

As a result of our analysis, we propose some policy initiatives to address the systemic

barriers that impede African Americans' efforts to close income gaps. The priority is

implementing anti-discrimination measures in labor markets, housing, and finance departments.

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It includes several anti-discrimination provisions, diversity and inclusion programs, and

institutions that are monitored to ensure they follow egalitarian principles and practices. The

second dimension should consist of policies focusing on reducing residential segregation and

promoting affordable housing to advance equity and compensate for wealth disparities. The

fourth thing that must be done is to invest in education and workforce development programs so

that African Americans can have more opportunities in life and improve their situation. By the

way, launching mental health and well-being initiatives in marginalized communities allows us

to reduce the impact of discrimination on people's psyches while also establishing a broader

concept of physical wellness.

Discussion
This study is undoubtedly valuable and thought-provoking because it determines the

extent to which race and racism factors influence Africans' economic situation. This study

reflects significant facts about five people's experiences with systemic racism, which has a

substantial impact on employment and upward mobility in the Black American community.

One of the study's main findings is that members of the African American community are

reluctant to face discrimination and prejudice in the workplace. Participants told stories about

career advancement challenges, unfair hiring processes, and unequal pay based on ethnic

backgrounds ("hegemony of racist ideology: Color, status, and the economic basis of racism").

These experiences confirm the existing prejudice of hiring companies, which exacerbates

economic and career disparities among indigenous groups. Discrimination in the workplace

affects more than just one individual. Instead, it promotes other types of life-chances inequalities

within a given population.

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Aside from that, the participants identified issues related to the availability of low-cost

housing units and safe financial services, including racially motivated redlining, housing

discrimination, and client profiling by lenders and proprietors. Discriminatory practices such as

redlining, which drew red lines around neighborhoods where minorities avoided living, continue

to be the foundation of our de facto segregation patterns, limiting African Americans' ability to

build wealth through home ownership. Discriminatory lending processes continue to cause

systemic discrimination against certain races by restricting access to credit and other investment

opportunities based on race rather than financial ability ("Hegemony of racist ideology: Color,

status, and the economic basis of racism"). This finding confirms the long-term impact of

systemic racism in the housing system and financial resource allocation, with the nature of this

system being the primary cause of economic deprivation in African American communities.

Furthermore, people claim that living in a racist society has a negative psychological

impact on them, causing depression and irritability. The constant encounter with various forms

of racism and prejudice causes untold stress, anxiety, and feelings of inferiority/significance.

When you look at the impact of racism from a psychological standpoint, you'll notice that it

affects not only individual health and well-being but also economic activities and outcomes

because the stress of navigating such systemic barriers prevents you from achieving satisfactory

professional status and the desired financial status. Recognizing the psychological domain of

racism is critical to the overall prosperity and survival of the African American community.

Indeed, given the recently discovered facts, it is clear that a variety of approaches and

measures will be required to address the issues of racial inequality and economic disparity. Such

programs would break down barriers to overcoming structural injustice by focusing on

expanding educational opportunities, affordable housing ventures, and increasing anti-

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discrimination at workplaces and lending institutions to build a more inclusive community. The

importance of capitalizing on education cannot be overstated because it provides the foundation

for a solid economic future and universal acceptance of upper mobility for African Americans

who have previously been on the opposite side of equality.

Furthermore, efforts such as raising awareness about the residual features of racism and

engaging in dialogue across or within racial lines have the potential to result in the vitality and

development of solidarity and social change. This study offers a glimpse into a much larger

conjecture about the state of racial justice by respecting African Americans' voices, perceptions,

and struggles, among others. Overall, it is a clarion call to address systemic racism in all its

forms. Addressing the structural inequalities that contribute to and sustain racism is critical in

creating a nation in which generations can enjoy living and growing economically, emotionally,

and spiritually at congruently progressive levels.

The study's main conclusion is that the two are becoming increasingly important in the

economic development of African Americans. This study, which aims to investigate the

challenges individuals face in staging their lives in black communities, provides a good

understanding of the broken system that limits economic progress and the rate at which mobility

occurs. As a result, in the future, policymakers, advocates, and local leaders must work together

to dismantle segregation structures, educate citizens about the long-term consequences of racism,

and advocate for economic justice.

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References
Boston, T. D. (1997). A different vision: African American economic thought. Psychology Press.

Button, J. W., Rienzo, B. A., & Croucher, S. L. (2015). Blacks and the quest for economic

equality: The political economy of employment in southern communities in the United

States. Penn State Press.

The Constitution, the Supreme Court, and racism: Compromises on the way to democracy.

(2016). The Politics of Race: African Americans and the Political System, 283-

289. https://doi.org/10.4324/9781315286372-31

Goetz, E. G. (2013). Public housing redevelopment and the displacement of African

Americans. Reinventing Race, Reinventing Racism, 59-

80. https://doi.org/10.1163/9789004231559_005

Government intervention, anti-discrimination policy, and the economic status of African

Americans. (2002). A Different Vision, 135-154. https://doi.org/10.4324/9780203012048-

11

The hegemony of racist ideology: Color, status, and the economic basis of racism. (n.d.). African

Images: Racism and the End of

Anthropology. https://doi.org/10.5040/9781474214254.ch-007

Hunt, R. G., & Bowser, B. (1996). Impacts of racism on white Americans. SAGE Publications.

Perlo, V. (1975). Economics of racism U.S.A.: Roots of Black inequality.

Powell, D. R. (2022). Race, African Americans, and psychoanalysis. The Trauma of Racism, 42-

72. https://doi.org/10.4324/9781003280002-5

Price, P. G. (2013). Epilogue: “New normal” in American television? Race, gender, blackness,

and the new racism. African Americans on Television, 434-

442. https://doi.org/10.5040/9798400608049.0006
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Rigby, P. (2020). The hegemony of racist ideology: Color, status, and the economic basis of

racism. African Images, 60-64. https://doi.org/10.4324/9781003084402-10

Shapiro, T. M., & Pokross Chair of Law and Social Policy Heller School of Social Policy and

Management Thomasapiro. (2004). The hidden cost of being African American: How

wealth perpetuates inequality. Oxford University Press, U.S.A.

Williams, K. M., & Prather, C. M. (2010). Racism, poverty, and HIV/AIDS among African

Americans. African Americans and HIV/AIDS, 31-51. https://doi.org/10.1007/978-0-387-

78321-5_3
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Appendix
i. Survey
Questionna
ire

Question
Number Question
1 What is your age?
2 What is your gender?
3 What is the highest level of education you have completed?
4 How would you describe your socioeconomic background?
Have you experienced discrimination or prejudice in the workplace based on your
5
race? (Yes/No)
Have you encountered challenges in accessing affordable housing due to your race?
6
(Yes/No)
Have you experienced discrimination or bias from lenders or landlords based on
7
your race? (Yes/No)
8 Have you ever felt psychological distress as a result of racism? (Yes/No)

ii. Interview Questions

Question
Can you describe any experiences of discrimination or prejudice you have faced in the
workplace based on your race?
Have you encountered any challenges in accessing affordable housing due to your race?
Can you share any experiences of discrimination or bias you have experienced from lenders
or landlords based on your race?
Have you ever felt psychological distress as a result of racism? If so, can you describe how it
has affected you?

iii.
Descripti
ve Table

Socioeconomic
Participant Age Gender Education Background

1 35 Male Bachelor's Degree Middle-class

2 42 Female High School Diploma Working-class

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3 28 Non-binary Master's Degree Upper-middle-class

4 50 Male Doctorate Degree Upper-class

5 39 Female Associate's Degree Working-class

iv.
Theme
s

Theme Description
Workplace
Participants' experiences of discrimination and prejudice in the workplace
Discriminati
based on race.
on
Housing Challenges faced by participants in accessing affordable housing due to race-
Challenges related discrimination and bias.
Financial
Instances of discrimination and bias from lenders or landlords based on
Discriminati
participants' race.
on
Psychologic
Participants' experiences of psychological distress and its effects as a result of
al Impact of
racism.
Racism

v. Correlation
Matrices
Age Education Socioeconomic Background
Age 1 -0.15 0.25
Education -0.15 1 0.65
Socioeconomic
0.25 0.65 1
Background