Economic Inequality and Race Relations Detroiters share perceptions of inequality

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Survey Findings Economic Inequality and Race Relations Detroiters share perceptions of inequality FOR MEDIA OR OTHER INQUIRIES: Dr. Elisabeth Gerber, Gerald R. Ford School of Public Policy, Institute for Social Research, ergerber@umich.edu Dr. Jeffrey Morenoff, Institute for Social Research, College of Literature, Science and the Arts, Department of Sociology, morenoff@umich.edu Conan Smith, Gerald R. Ford School of Public Policy, conan@umich.edu Detroit Metropolitan Area Communities Study Winter 2017 [1]

Detroiters Perceptions of Economic Inequality and Race Relations Overview Detroiters regardless of their income level share perceptions of serious economic inequality in the region. Half of Detroit residents say income differences across the region are too large, and a large majority believes that recent investments in Detroit primarily benefit the wealthy over the poor. Detroiters are more divided, however, on the question of government s responsibility for reducing income inequality. Detroiters regardless of their race or income level offer more upbeat assessments of race relations in their own communities than they do for the nation as a whole. These findings come from the Winter 2017 Detroit Metropolitan Area Communities Study, a representative survey of 444 Detroiters. 1 1 Interviews were self-administered and conducted online as well as using paper and pencil between March and June 2017. Respondents were recruited via mail and email from the list of 714 adults who responded to the Fall 2016 wave of the DMACS survey. The margin of sampling error for a random sample survey of this size is 4.7 percentage points at the 95% confidence level. The data have been weighted using a raking procedure by age, education, sex, and race to match Census estimates for the City of Detroit. Inequality [2]

Key Findings Half of all Detroiters feel economic inequality in the Metro area is too large, but fewer believe it is the government s job to solve the problem By a nearly three-to-one margin, Detroiters are more likely to agree (50%) than disagree () that differences in income in the metro Detroit area are too large. Almost two in ten neither agree nor disagree () while one in ten don t know (11%), as shown in Figure 1. Detroiters are more divided regarding whether it is the responsibility of the government to reduce differences in income between those with high incomes and those with low incomes (37% agree, 24% disagree). Over a third does not express an opinion on this question, either saying they don t know (13%) or neither agree nor disagree (22%). Figure 1: Please tell us how much you agree or disagree with the following statements. 100% Strongly agree or somewhat agree Strongly disagree or somewhat disagree Neither agree nor disagree Don't know 50% 50% 37% 22% 24% 11% 13% 0% Differences in income in Metro Detroit are too large It is the responsibility of the government to reduce differences in income between people with high incomes and those with low incomes These views vary based on race and income, as shown in Figures 2 and 3. White residents are more likely than Black residents to perceive income inequality as a problem in the Metro area and are more likely to want government to solve it. Detroiters with higher levels of education and household income are equally or more likely than those on the lower end of the socioeconomic scale to see inequality as a problem but they are more divided on government s role in addressing it. Inequality [3]

Figure 2: Differences in income in Metro Detroit are too large Total Agree Total Disagree Income Education Race Black White BA and above Some college/associate's degree High school Less than high school $60,000 or more $30,000 To $59,999 $10,000 To $29,999 Less Than $10,000 48% 11% 73% 12% 74% 19% 55% 45% 20% 41% 13% 58% 66% 23% 50% 16% 51% 0% 50% 100% Figure 3: It is the responsibility of government to reduce differences in income between people with high incomes and those with low incomes Total Agree Total Disagree Income Education Race Black White BA and above Some college/associate's degree High school Less than high school $60,000 or more $30,000 To $59,999 $10,000 To $29,999 Less Than $10,000 24% 33% 26% 49% 32% 44% 33% 32% 36% 15% 45% 34% 36% 33% 27% 24% 36% 23% 41% 0% 50% 100% Inequality [4]

Detroiters tend to believe groups with greater existing privilege are benefiting most from Detroit s resurgence, though compared to Fall 2016 slightly more see the benefits as equally shared As Figure 4 illustrates, when asked who they think benefits more from recent investments in the Midtown and Downtown areas, Detroiters are more likely to say: Wealthier people (70%) as compared to poorer people (2%) or both equally (15%); White people (47%) as compared to Black people (2%) or both equally (28%); City residents living closer to downtown (45%) as compared to those living in neighborhoods further out (14%) or both equally (24%); Those who live elsewhere in Metro Detroit Wayne, Macomb, Oakland and Washtenaw counties (38%) as compared to those living in the city (20%) or both groups equally (24%); and People who recently moved to Detroit (37%) as compared to longtime residents (10%) or both equally (30%). This is quite similar to the results of the Fall 2016 DMACS survey, though in several categories, Detroiters are slightly more likely in early 2017 than they were in Fall 2016 to say the benefits of Detroit s resurgence are shared across groups. In particular, we find: An eight percentage-point increase in those saying new and longtime residents benefit the same amount; A six-point increase in those saying City residents and those elsewhere in the metro area benefit equally; and A six-point increase in those saying residents near and further from downtown benefit equally; The percentages saying wealthy and poor benefit equally, and white and black residents benefit equally are also slightly higher in the more recent survey. 2 2 Given the short amount of time elapsed between surveys it is possible that some portion of the change, particularly the drop in don t know responses, is driven by a phenomenon known as panel conditioning, in which participation in an earlier survey can influence responses to a later one. Inequality [5]

Figure 4: Over the past several years, significant new investments have been made by foundations, government and private companies in the Downtown and Midtown areas of Detroit. We would like to know which of the following groups you think are benefiting more from the investments being made in Downtown and Midtown Detroit. Fall 2016 Winter 2017 People who live elsewhere in the metro Detroit area Metro and city residents the same amount 18% 24% 44% 38% Detroit residents who live closer to downtown Closer and further equally 18% 24% 40% 45% Peole who recently moved to Detroit Recently moved and long-time residents the same amount 40% 37% 22% 30% White people White and black the same amount 26% 28% 52% 47% Wealthier people Wealthier and poorer the same amount 10% 15% 74% 70% 0% 50% 100% Inequality [6]

Detroiters have a much more positive view of race relations in their own neighborhoods than in the US as a whole As shown in Figure 5, most Detroiters (63%) say race relations in the US are either very bad or somewhat bad and just 14 percent say they are somewhat or very good. In contrast, only 15 percent of Detroiters describe race relations in their own neighborhoods as bad, while 39 percent think they are good. On the neighborhood level, many do not have strong opinions; nearly half are either neutral (29%) or say they don t know (14%). Figure 5: Do you think race relations in the United States/your neighborhood are: In the United States In your neighborhood 100% 63% 50% 39% 29% 0% 14% 13% 15% 14% 5% Very/somewhat good Neither good nor bad Very/somewhat bad Don't know These perceptions do not vary much by race but do vary by income. When asked about race relations in the United States as a whole, 15 percent of black residents assessed them as good, similar to the 11 percent found among whites. The percentage of Detroiters saying that race relations in their neighborhood are good is the same, 39 percent, for blacks and whites. Those with household incomes over $60,000 are more positive about race relations in their neighborhood (53% good ) than are those at the lowest income levels (34% "good"). Inequality [7]

Acknowledgements We are grateful for the generous financial support of the Kresge Foundation, the UM Office of Research, the Ford School of Public Policy's Diversity Center, and Poverty Solutions at the University of Michigan. We also benefited from the advice and expertise of the Institute for Social Research's Survey Design Group and Survey Research Operations. This report is a collaborative effort based on the input of numerous colleagues and stakeholders, including: Dr. Elisabeth Gerber, Dr. Jeffrey Morenoff, Elizabeth Phillips, Joshua Rivera, Conan Smith, Anna Strizich, and Emma White. Inequality [8]