The State of Economic Equity in Detroit
The State of Economic Equity in Detroit
IN DETROIT
MAY 2O21
1
THE STATE OF ECONOMIC EQUITY
IN DETROIT
A publication of Detroit Future City’s Center for Equity, Engagement, and Research
AUTHORS
Edward Lynch, AICP
Ashley Williams Clark
Anika Goss
Shari Williams
Sema Abulhab
2
ACKNOWLEDGEMENTS
FUNDED BY
The Kresge Foundation
Hudson Webber Foundation
Ralph C. Wilson, Jr. Foundation
JPMorgan Chase & Co.
STAKEHOLDERS
The nearly 500 Detroit stakeholders
who lent their time, knowledge, and
lived experience to inform this report.
PHOTOGRAPHY
Tafari Stevenson-Howard
GRAPHIC DESIGN
Susana Castro-Pollard
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FOREWORD
The pandemic laid bare inequities 400 years in the making, deeply embedded in the design
of our institutions, laws, and systems. Today, at one end of the economic spectrum, the
wealthiest increasingly garner the gains, while at the other, low wages are a given. For all
but the wealthiest, economic life becomes more and more precarious; for the poor, poverty
becomes ever more a trap. For families of color, the burdens are all the more extreme.
What Detroit Future City’s new Center for Equity, Engagement, and Research has given us
is the most comprehensive and sophisticated compilation ever of data to track economic
equity — which is to say, economic inequity — across the region. This groundbreaking
report equips community leaders with the data to inform solutions for inclusive growth
and prosperity. Here we can see why the cause of economic justice must be elevated to
an immediate imperative.
Now is our time to redouble our efforts to build an economy that works for all Detroiters.
An economy in which everyone can benefit and fully participate regardless of race, ethnicity,
gender, or geography.
Now is our time to tap into the potential of Detroiters who have in the past been locked out
of prosperity, so we can all share in the benefits of a more equitable and inclusive region.
Now is our time to join Detroit Future City and embrace the bold, innovative policy ideas
that can transform systems and institutions in our city and region.
4
FOREWORD
What occurred to me was that the racial violence and police brutality that we were
witnessing was just one part of a complicated, ugly history of being Black and a person
of color in America. If we were to videotape the intentionality of redlining, segregation,
and economic suppression, we would gasp in shock. We are in a rare moment of change
in the United States. A moment not dissimilar from the American Revolution, the Civil
War, or the Civil Rights Movement. The summer of 2020, when a pandemic that left
500,000 Americans dead, race and economics became the agent of change for this
country. We will never be the same. What do we do now?
At Detroit Future City, we decided to dig deeper and lean into the intersection of race
and economic equity. Last year, prior to the pandemic, we launched the Center for
Equity, Engagement, and Research. We thought this would be an opportunity for Detroit
to grow together equitably, in a soft, hand-holding sort of way, asking everyone to do
better. What became clear, is that race and economic equity must be acknowledged
and incorporated into our business practices if we are to grow as a region. This is not a
request. This is imperative.
5
Detroit remains a majority Black city, at 77%. It also remains one of the poorest large MY SUMMER
This will not be an easy report to read. However, I hope you will join us in the discovery The Family Tree
about what can be done and what we, as individuals, can do to make a difference. by Karen Branan
The Deepest South of All
I am dedicating this report to two important people: my father, Tom Goss, who inspires by Richard Grant
me every day and was deeply moved and ready to talk this summer about his own Jim The Sum of Us
Crow segregation experience, and my dear friend and champion of Detroit, Marlowe by Heather McGhee
Stoudamire, who lost his battle with COVID-19 last March. He would have a lot to say
about this report and the change needed for Black and Latinx Detroiters.
Anika Goss
Chief Executive Officer
Detroit Future City
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FOREWORD
In many ways, our health care system is a reflection or microcosm of what’s happening
on a broader scale across our American society. Inherent structural barriers continue to
prevent opportunities for our most vulnerable – in this case, sufficient access to care
and coverage.
The connection between poor health and socioeconomic challenges is widely documented.
Vulnerable populations, especially in Detroit, that are disproportionately affected by illness
and chronic disease, often face the added struggle to pay for health care. For instance,
African Americans are nearly 1.5 times more likely to be diagnosed with diabetes, a chronic
disease that also raises a person’s risk for serious complications, including heart disease,
stroke, amputations, end-stage kidney disease, blindness and death. People with diabetes
have medical expenses that are about two-and-a-half times those who do not.
The events of the last year have only underscored this need. While leading Michigan’s
response to COVID-19, we saw how the pandemic severely impacted our communities
of color. African Americans comprise 14% of Michigan’s population, yet represented 40%
of our COVID-related deaths during the first surge in 2020. After feeling left behind by
Detroit’s economic resurgence, many are feeling that the health care and public health
system let them down once again. At the same time, the murders of African Americans
like George Floyd last year triggered a national reckoning with systemic racism and police
violence – erupting in protests across our nation.
7
To say our hearts are broken by both would be an understatement. As president and
As an anchor institution serving the people of Michigan and beyond for more than 105
years, we know our mission is sacred. We are called to improve people’s lives. We do that
by providing the highest quality of care to each and every individual we serve, engaging
in groundbreaking clinical and public health research, and training the next generation of
health care professionals. However, we must also collectively recognize that our mission
extends far beyond the four walls of our institutions.
There are many who remain hopeful that we are at an inflection point and encouraged
that authentic conversations are taking place, both in our health care institutions and our
broader societies. But we also know that hope and dialogue are not enough. We must act
on behalf of every life we serve – by acknowledging our collective failures, embracing the
fight for justice and equity for all, and partnering to earnestly and courageously lift up our
communities. If we fail to do this, we dare not call ourselves successful stewards of health
and wellness.
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CONTENTS
9
Business & entrepreneurship 58
Education 69
Educational attainment 73
Third-grade English and language arts proficiency 75
Career and technical education completion rates 77
Health 79
Life Expectancy 83
Infant Mortality 85
Percentage of residents with health insurance coverage 87
Conclusion 101
References 105
Appendix 106
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The future of Detroit must benefit all Detroiters and
unleash the economic promise and well-being of its
residents. However, the current reality is that, in spite of a
decade of growth, substantial economic inequities persist in
Detroit. Prior to the COVID-19 pandemic, the median income
in Detroit was half that of the region and the average home
value of a white Detroit resident is approximately $46,000
higher than a home owned by an African American.
The current state of inequity does not have to be, nor should
it be, Detroit’s future. As Detroit begins recovering from the
COVID-19 pandemic, there must be an acknowledgement
of the economic inequities that exist, a commitment to
close these disparities, and intentional work toward a more
economically equitable future. Building a more economically
equitable city will build a stronger region. We must ensure
that the recovery is one that includes all residents, and that
we are building an economically equitable city where all
residents, both old and new, can thrive.
Art created by Liza Polaskey
Throughout 2020, Detroit Future City’s Center for Equity,
Engagement, and Research engaged nearly 500 community
stakeholders representing residents, youth, nonprofits, the In an economically equitable Detroit:
private sector, the public sector, philanthropy, and others. All Detroiters are meeting their unique
The time and input from these stakeholders were critical
in shaping a shared vision for economic equity, providing a
needs, prospering, and fully and fairly
guidepost to collectively work toward in hopes of making a participating in all aspects of economic
more economically equitable city. life within a thriving city and region.
11
The State of Economic Equity in Detroit is a resource for those in the private and public sectors,
EXECUTIVE SUMMARY
foundations, nonprofits, community organizations, and residents to inform their actions to advance
economic equity. These actions can include agenda setting, advocacy, policy, subject area research,
and goal-setting.
Detroit Future City has identified 22 indicators across six focus areas. These indicators provide clear,
measurable, and accurate data points that not only illustrate the current state of economic equity
in Detroit, but can also be used to track economic equity over time.
Neighborhoods
Education Health
and housing
In addition, this report’s six focus areas look at the broader economic context within the Metro Detroit
region and examine economic equity from geographic and racial/ethnic equity lenses.
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SUMMARY OF FINDINGS
EXECUTIVE SUMMARY
INCOME & ACCESS TO QUALITY BUSINESS &
WEALTH BUILDING EMPLOYMENT ENTREPRENEURSHIP
See pg. 28 to learn more See pg. 41 to learn more See pg. 58 to learn more
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SUMMARY OF FINDINGS
EXECUTIVE SUMMARY
NEIGHBORHOODS
EDUCATION HEALTH & HOUSING
the region.
White people
See pg. 69 to learn more See pg. 79 to learn more See pg. 89 to learn more
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Achieving economic equity in Detroit is both necessary and
EXECUTIVE SUMMARY
obtainable. To do this, there must be deliberate steps taken
to close existing gaps and address the region’s enduring
challenges. Even with a decade of steady economic growth,
the many disparities highlighted throughout this report
persist. To build toward a more economically equitable city,
we must work to close gaps in income, employment, and
education and ensure that all in the region are able to earn
at least a middle-class wage.
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INTRODUCTION
1
Note: For the purposes of this report, racial, ethnic, and gender categories are reflective of those used in federal data sources. DFC recognizes that people may
choose to identify by other terms. Additionally, due to large margins of error and data quality, certain groups may not be reflected in the data below, but DFC
recognizes that people within these groups are an important part of the Detroit community. Additionally, though racial, ethnic, and geographic equity are the focus
of this report, there are many additional factors of human identity that may impact economic equity, such as age, physical ability, sexual orientation, and others.
16
A VISION FOR ECONOMIC EQUITY
17
MEASURING ECONOMIC EQUITY
This set of economic equity indicators was selected to provide clear, measurable, and accurate data
points that illustrate the current state of economic equity in Detroit and across the region. The
report is divided into six sections for each of the six economic equity indicator focus areas. Within
each focus area, indicators are analyzed over time and through both a racial/ethnic and geographic
equity lens.
Neighborhoods
Education Health
and housing
In this report, the region is defined as the six-county Detroit-Warren-Dearborn Metropolitan Statistical Area (MSA), which includes Wayne, Oakland, Macomb,
2
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HOW TO USE THIS REPORT
Agenda setting, Use insights from the data to develop and advocate for more equitable
advocacy, and policy policies, programs, and processes.
Goal setting Establish goals and track progress toward reaching goals over time.
As these indicators are tracked over time, they can help determine whether and how Detroit is progressing
toward economic equity:
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IN CONTEXT: THE REGION’S ECONOMY
IN CONTEXT:
THE REGION’S ECONOMY
20
IN CONTEXT: THE REGION’S ECONOMY
All Detroiters should be able to fully
and fairly participate in all aspects
of the region’s economic life.
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IN CONTEXT: THE REGION’S ECONOMY
Economic growth in the region will not in and of itself improve the situation for Detroiters,
as the impact of systemic racism, segregation, discriminatory hiring practices, and
exclusionary zoning have prevented Detroiters from equitably benefiting from the growth
in the region. However, the strength of the region’s economy is a key foundational support
for achieving economic equity in Detroit. The region’s economy plays a crucial role in
driving economic equity for the city.
OVERVIEW
22
IN CONTEXT: THE REGION’S ECONOMY
INDICATORS
Jobs per Job Total payroll Middle-
working-age growth generation wage jobs
resident per capita
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JOBS PER WORKING-AGE RESIDENT
64 60
Source Mass Economics analysis of QCEW data; U.S. Census Bureau, American Community Survey, 2019 1-year release
24
JOB GROWTH
Metro
21%
Why is it important for economic equity? Detroit
The number of private-sector jobs in the city and region is one
of the metrics that shows the strength of the economy and Michigan 19%
the amount of economic opportunity. Like other metrics of the
overall economy, it can tell us whether the economy is growing
or contracting. The ability of the region’s economy to provide U.S. 19%
employment opportunities for all workers in the region can have
substantial effects on economic equity. Source: Quarterly Workforce Indicators, 2010-2019
25
TOTAL PAYROLL GENERATION PER CAPITA
$24,870 $22,790
Source: American Community Survey, 1-year estimates, 2019; Mass Economics analysis of QCEW data, 2019
3
Adjusted for inflation in 2019 dollars.
26
MIDDLE-WAGE JOBS
4
Based on IPUMS USA, the median wage in the Detroit region was $37,000 in 2019.
27
INCOME & WEALTH BUILDING
INCOME &
WEALTH BUILDING
28
INCOME & WEALTH BUILDING
All Detroiters should be able to meet their
unique needs and prosper by accessing,
generating, and maintaining income
and wealth.
29
INCOME & WEALTH BUILDING
Factors like the ability to gain a quality education and being able to access employment opportunities in
the region have a substantial effect on income and wealth creation, but will not close the racial wealth
gap alone. There are other factors that have a profound effect on the ability to build wealth beyond just
income. Wealth creation is complex — it is multifaceted in how it is generated, cumulative in how it is built
across generations, and systemic in the policies that inhibit or promote wealth creation. Systemic barriers
to wealth creation can be seen, for example, in how home values appreciate at lower rates for African-
American homeowners than for white homeowners, challenges in getting a mortgage to purchase a
home, and access to capital to start or expand a business.
OVERVIEW
Middle class remains out of reach for many and inequities persist.
Following the Great Recession and the City’s bankruptcy in 2013, there have been gains in income across the city, but
incomes remain low overall, and only a small share of households are considered middle class. Inequities persist between
the city and the region, with a sizable gap in median household income. There is a growing gap within the city between
white and African-American and Hispanic residents. Housing, which can be a wealth generator, continues to see
increases in value since the depths of the Great Recession, but the value of housing remains extremely low in absolute
terms and when compared to most places around the country.
30
INCOME & WEALTH BUILDING
INDICATORS
Median Share of Non-wage Average
household population that income per home
income is middle class tax return value
31
MEDIAN HOUSEHOLD INCOME
Though the Great Recession caused a decline in household income, that trend has
reversed, and since 2015, there has been a slow but steady increase in incomes
across the city.5 Despite the increase in incomes, the median household income in
Detroit is just under $34,000.
5
Adjusted for inflation in 2019 dollars.
32
Geographic equity Racial / ethnic equity
Detroit $33,970
White African Hispanic
American
Metro
Detroit $63,470 $50,000
•
$40,000 •
Michigan $59,580 • •
• • •
• •
•
$30,000 • •
• • •
• • •
• •
U.S. $65,710 •
$20,000
Source: U.S. Census Bureau, American Community Survey,
2019 1-year release
$10,000
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: U.S. Census Bureau, American Community Survey, 2010 and 2019 1-year release
33
SHARE OF POPULATION THAT IS MIDDLE CLASS
6
To learn more about the African-American middle class in Detroit see DFC’s report: Growing Detroit’s African-American Middle Class.
34
Geographic equity Share of middle-class households
Michigan 40%
U.S. 39%
White 35%
Hispanic 28%
35
NON-WAGE INCOME PER TAX RETURN
The amount of non-wage income per tax filer is relatively low in Detroit, but is
improving. From 2010 to 2018, the average income per tax filer from interest,
2010 2018
dividends, and capital gains doubled to $1,820. Income from businesses and
professional income increased by close to 50%, from $1,630 in 2010 to $2,430 Source: IRS Statistics of Income, 2010 and 2018
in 2018.
36
Geographic equity Average non-wage income per tax return
$8,680
U.S.
$2,320
7
American Community Survey home values are based on homeowners’ estimates, which may vary from
other data sources that are based on actual property transactions. Using the ACS value allows for the
disaggregation of home values based on the demographic characteristics of the owner, not just geography.
8
To learn more, see Rothstein, Richard. 2018. The Color of Law. New York, NY: Liveright Publishing Corporation.
38
Geographic equity
U.S.
$293,810
LOW
$269,780 $234,420
Metro Detroit
$183,070 $209,390
LOW $169,080
Michigan
$179,360
LOW $164,320
$99,790
$78,160 Detroit
LOW
$55,590
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: U.S. Census Bureau, American Community Survey, 2010-2019 1-year release
39
Racial / ethnic equity Average home value
40
ACCESS TO QUALITY EMPLOYMENT
ACCESS TO QUALITY
EMPLOYMENT
41
ACCESS TO QUALITY EMPLOYMENT
In a more economically equitable Detroit,
all residents, regardless of education,
should be able to enter the middle class.
42
ACCESS TO QUALITY EMPLOYMENT
Though there has been broad job growth over the past decade,
with the number of jobs in Detroit increasing by 12% and in
the region by 21%, there remain stubborn and persistent gaps
in who has access to and benefits from those jobs. Building a
strong economy that can work for all residents of the city and
region will have profound effects on not only the prosperity of
the region, but the prosperity of all its residents.
OVERVIEW
43
ACCESS TO QUALITY EMPLOYMENT
INDICATORS
Employment Distribution of Hourly Full-time and Cost of
status for the middle-wage wage by part-time commute
working-age jobs education employment
population
44
EMPLOYMENT STATUS FOR
EMPLOYED + UNEMPLOYED
(Looking for work) LABOR FORCE
PARTICIPATION
EMPLOYED + UNEMPLOYED + NOT IN LABOR RATE
(Looking for work) FORCE (Not looking
for work)
UNEMPLOYED
(Looking for work)
UNEMPLOYMENT RATE
EMPLOYED + UNEMPLOYED
(Looking for work)
45
What does it show? Unemployment rate and labor
75%
67%
11%
46
Geographic equity Employment status for 16- to 64-year-olds
47
DISTRIBUTION OF MIDDLE-WAGE JOBS
2010 2019
What does it show?
Detroit is home to a relatively high share of middle-wage jobs, 35% of Source: Mass Economics Analysis of QCEW data,
2010 and 2019; IPUMS USA, 2010 and 2019
jobs in the city are middle-wage jobs. However, over the past decade,
middle-wage jobs were the slowest growing segment of Detroit’s
economy, growing only 3%, compared to 14% in the U.S. and 23% in
the region. The shifting of the city’s economy towards more low-wage
jobs and jobs that require a bachelor’s degree or higher indicates a
growing gap in the economy.
48
Geographic equity
Accessible but
27% 33% 33%
low-wage jobs
Middle-wage
35% 34% 35%
jobs
Bachelor’s degree
38% 34% 32%
or higher jobs
Source: Mass Economics Analysis of QCEW data, 2010 and 2019; IPUMS USA, 2019.
Accessible but
21% 32% 29%
low-wage jobs
Middle-wage
3% 23% 14%
jobs
49
Racial/ethnic equity Share of private jobs by race/ethnicity
Source: Mass Economics Analysis of QCEW data, 2019; IPUMS USA, 2019
50
HOURLY WAGE FOR WORKERS BY EDUCATION LEVEL
With a
$35.59
Why is it important for economic equity? four-year
degree
This metric shows the difference between the wages earned by those with
and without a four-year degree and provides a comparison between the two $32.68
groups. It is also a barometer for the ability of those without a four-year degree
to enter the middle class. Education cannot continue to be the only path to the Without a
four-year $20.32
middle class. In a more economically equitable Detroit, all workers, regardless of
degree
education level, would be able to earn a middle-class wage.
$17.58
9
Adjusted for inflation in 2019 dollars.
51
Geographic equity
52
Racial / ethnic equity Median hourly wage for job holders with and without
53
DISTRIBUTION OF PART-TIME, PART-YEAR, AND FULL-TIME
54
Geographic equity Racial / ethnic equity
Share of workers working more than Share of workers working more than
35 hours per week 35 hours per week
2019 Detroit, 2010 and 2019
Hispanic 87%
Detroit 80%
84%
Metro African 83%
Detroit 84% American 82%
White 81%
85% 79%
U.S.
2010 2019
Source: IPUMS USA, 2019
Source: IPUMS USA, 2010 and 2019
Share of workers working more than Share of workers working more than
48 weeks per year 48 weeks per year
2019 Detroit, 2010 and 2019
85%
83%
Detroit 83% White 83% 81%
African 80%
American
Metro
Detroit 87%
55
COST OF COMMUTE
Public transit
What does it show?
24%
When compared to residents of the region, Detroiters spend a larger
share of their income on transportation, regardless of whether they
are commuting by public transit or private automobile. Currently,
Detroiters who use public transit for their commute spend 21% of Total 16%
their income commuting, compared to 16% for other residents in the
region. For those who commute by private automobile, Detroiters
spend 24%, compared to 16% for residents across the region. Out-of-pocket costs 11% 19%
56
Geographic equity Racial / ethnic equity
19%
Total 16%
12%
13% 13% 13%
Out-of-pocket costs 10% 18%
Source: IPUMS USA, 2019; BLS; BTS; DDOT; Value Penguin Source: IPUMS USA, 2019; BLS; BTS; DDOT; Value Penguin
Note: There is a small number of public transit commuters who identify as white. (n <30)
57
BUSINESS & ENTREPRENEURSHIP
BUSINESS &
ENTREPRENEURSHIP
58
BUSINESS & ENTREPRENEURSHIP
Growing minority-owned businesses
can transform our economy.
59
BUSINESS & ENTREPRENEURSHIP
Access to small-business capital, at all stages, is one of the most important — and often limiting — factors in
the establishment and growth of businesses. The ability of a city and region to support diverse entrepreneurs
is also an important component of national competitiveness. Building a diverse base of entrepreneurs builds
a more attractive business environment and expands networks that can provide better supports as new
businesses start and expand.
Beyond wealth creation for entrepreneurs and job creation for residents, small businesses have the
opportunity to transform Detroit’s neighborhoods. Business retention and creation is an important step
toward the revitalization of desirable middle-class neighborhoods, where residents have access to a range
of services and amenities within a short distance of their homes.
OVERVIEW
The entrepreneurship rate in Detroit is low when compared to the region and state.
It is especially low for minority-owned firms10, with just four minority-owned firms per 1,000 residents. Though the
entrepreneurship rate is low, firms tend to do comparatively well in terms of the number of employees or revenue, but
African-American-owned firms lag in both categories. In the city, there is a limited amount of small-business capital
available, with lending rates at about 75% of the region or state.
10
The entrepreneurship rate is measured by the count of firms with employees by race/ethnicity divided by the working population (25 to 64 years old) for each racial/ethnic group.
60
BUSINESS & ENTREPRENEURSHIP
INDICATORS
Entrepreneurship Average Capital access
rates per capita business for small
size businesses
61
ENTREPRENEURSHIP RATES PER CAPITA
32
U.S. 32
Why is it important for economic equity? Metro Detroit
31
31 30
Tracking the number and rate of businesses with employees can be Michigan 29
an indicator of opportunity for entrepreneurs in the city. Within an
economically equitable Detroit, race, ethnicity or geographic location
would not be a barrier to business ownership or growth. However,
entrepreneurship rates can and do vary dramatically by demographic group,
as well as by geography. These differences point to different strengths and
weaknesses in the business support and capital ecosystems, and can be
an important data point in crafting small-business policy and supports.
17
Detroit 16
What if?
If Detroit had the same entrepreneurship
rate as the region, the number of businesses
with employees would nearly double.
62
Geographic equity Growth in entrepreneurship rate
Michigan 3.6%
U.S. 3.5%
63
Racial / ethnic equity Entrepreneurship rate by race/ethnicity
10%
6%
3% 4% 3% 3%
–15%
All privately held African White Hispanic
American
Source: U.S. Census Bureau Annual Business Survey, 2017; Survey of Business Owners, 2012;
American Community Survey, 2013-2017
64
AVERAGE BUSINESS SIZE
$4.2M
$2.3M
Detroit U.S.
65
Geographic equity Average revenue per firm Average employees per firm
larger, on average.
Racial / ethnic equity Average revenue per firm by Average employees per firm
Detroit ranks lower than the region race/ethnicity in Detroit by race/ethnicity
Detroit, 2017 Detroit, 2017
in terms of both size and revenue
for minority-owned firms. African- Detroit U.S. Detroit U.S.
American-owned firms in Detroit
tend to be smaller, averaging just Detroit
Detroit $4.2M 17
under 10 employees, and earn less
revenue, at $1.4 million per firm, African
$1.4M
African
10
indicating the need to evaluate American American
and improve the processes, White $4.7M White 18
programs, and policies in place
to support these businesses. Hispanic $3.4M Hispanic 14
Source: Annual Business Survey, 2017 Source: Annual Business Survey, 2017
66
CAPITAL ACCESS FOR SMALL BUSINESSES
What if?
If businesses in Detroit had the same access
to capital as those in the region, there would
be $90 million more to help businesses start
and grow.
67
Geographic equity Value of loans per job at small businesses
$2,940
2012 2018
Source: FFIEC-CRA, 2012 and 2018; SBA, average of 2011-13 and average of 2017-2019;
CDFI, average of 2011-2013 and average of 2015-2017; QWI, 2012 and 2018
11
Adjusted for inflation in 2018 dollars.
Note: Capital access for small businesses is not available by race/ethnicity.
68
EDUCATION
EDUCATION
69
EDUCATION
In a more economically equitable Detroit,
the education system would adequately
prepare all residents for the workforce.
70
EDUCATION
EDUCATION
A quality education system can have a dramatic impact on the city and region, and can continue to
grow the opportunities for Detroiters to participate, compete, and succeed in the workforce. Quality
educational opportunities can prepare the city’s future workforce, and continuing education can increase
residents’ opportunities to build skills and networks. Building the talent base and investing in the people
of the city is not just a vital component of improving the economic prospects of residents but a vital
component of the economic development and competitiveness of attracting new jobs to the city and
the region.
There are links between education and workforce outcomes, and disparities remain in wages across racial
and ethnic groups. Across the region, those with a bachelor’s degree earn 86% more than those without,
which translates to an additional $15 per hour. Furthermore, there are declines in unemployment and gains
in labor force participation as the level of education increases. Though a college education is an important
factor and a goal for many, it cannot be the only path for one to access the middle class. To contribute
to building a strong and competitive workforce, there also must be a strong community college and
career and technical education system to provide the necessary skills to expand the pathways to enter
the middle class.
OVERVIEW
71
EDUCATION
INDICATORS
Educational Third-grade Career and
attainment English/language technical education
arts proficiency completion rates
72
EDUCATIONAL ATTAINMENT
EDUCATION
What is it?
The share of the population 25 years or older by their highest level Educational attainment for
of education. Detroiters age 25 and older
Detroit, 2010 and 2019
35%
Why is it important for economic equity?
High school 33%
There is a strong link between educational attainment and
workforce outcomes. Those with a bachelor’s degree have greater Some college 26%
success in both earnings and being able to gain employment. The 25%
improvement in workforce outcomes, in the form of higher wages, No high school 23%
can have substantial effects on a resident’s ability to build wealth.
17%
Educational attainment is also important for building a strong 16%
workforce that can attract jobs to the region. Bachelor’s
or higher 12%
Over the past decade, educational attainment across the city has
improved, with a declining share of residents without a high school
2010 2019
diploma and an increasing share of residents with high school
diplomas and bachelor’s degrees or higher. The share of residents Source: American Community Survey, 1-year estimates,
with a bachelor’s degree has increased despite a declining share 2010 and 2019
73
Geographic equity Educational attainment for Detroiters age 25 and older
EDUCATION
2019
The city of Detroit has a smaller share of residents
with a bachelor’s degree than the region or state. U.S. Michigan Metro Detroit Detroit
Among the 100 largest cities, Detroit has the second No
lowest share of residents with a bachelor’s degree. high school 11% 9% 9% 16%
Currently, only 17% of city residents 25 and older have High school 27% 29% 27% 35%
earned a bachelor’s degree, about half of the rate of
the region. There is also a smaller share of residents Some college 20% 23% 22% 25%
who have obtained an associate’s degree, with 7% of Associate’s 9% 9% 9% 7%
Detroiters earning this credential, compared to 9% in
Bachelor’s
the region as a whole. or higher 33% 30% 32% 17%
Other aspects of equity Source: American Community Survey, 1-year estimates, 2019
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THIRD-GRADE ENGLISH AND LANGUAGE ARTS PROFICIENCY
EDUCATION
What is it?
The share of third-graders that scored “proficient” or “advanced” on the English Share of third-graders
and language arts component of the Michigan Student Test of Educational Progress proficient or advanced in
(M-STEP). English/language arts
Detroit, 2015 and 2019
2015 2019
What does it show?
Source: Michigan Department of Education,
The majority of third-graders in Detroit are not proficient in English and language 2015 and 2019
arts, with little progress over the last five years and gaps growing by race/ethnicity.
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Geographic equity
EDUCATION
In Detroit, third-grade English and language arts Share of third-graders proficient or advanced
proficiency levels are substantially lower than across in English/language arts
the region and state. In 2019, only 17% of the city’s 2019
third-graders were proficient or advanced in English
and language arts, compared to 43% in the region.
Over the past five years, the rate of proficiency Detroit 17%
across Detroit’s schools has held steady but not
improved, while it has declined across the region
Metro
by 5.3 percentage points, and in the state by 4.9 Detroit 43%
percentage points. As a result, the closing gap in
proficiency between students in Detroit and those
across the region appears to be a positive, however, Michigan 45%
the gap is closing due to the decrease in proficiency
rates across the region regardless of race. It is Source: Michigan Department of Education, 2019
Hispanic 21%
White 20% 19%
African 16%
American 15%
2015 2019
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CAREER AND TECHNICAL EDUCATION COMPLETION RATES
EDUCATION
What is it?
The enrollment rate and completion rate for career and technical education (CTE). Career and technical education
completion rates
Detroit, 2011 and 2019
Why is it important for economic equity?
A four-year degree cannot be the only pathway to the middle class. Residents need 34%
access to quality career training, which can be provided by CTE. These programs
provide the opportunity for those entering the workforce and changing fields to
gain necessary skills and certifications to be competitive in the job market. They
also allow those currently employed to add to their existing skillsets. Upskilling 16%
workers to increase the diversity of the talent in the region creates a stronger
employment base.
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Geographic equity Career technical education completion rates
EDUCATION
In Detroit, about one-third, or 34%, of students who 2019
start CTE complete the program, which is lower
than both the region, 39%, and the state, 43%. % Completing % Not completing
Wayne-Oakland-
39% 61%
Macomb Counties
Hispanic 9% 39%
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HEALTH
HEALTH
79
HEALTH
In a more economically equitable Detroit,
all Detroiters would have access to quality
affordable health care.
80
HEALTH
HEALTH
Race or where someone lives should not be a predictor of how long they will live. The social determinants of
health are the social, environmental, and economic factors that contribute to a person’s health and well-
being. These factors include discrimination, employment, income, wealth, education, workplace conditions,
quality housing, clean air, and health care access.iv The social determinants can compound and lead to
vast disparities in health outcomes. With the onset of the global COVID-19 pandemic, disparities in health
outcomes have once again been laid bare.
Many of the economic equity factors described in this report influence the social determinants of health,
influencing health challenges, access to health care, and health outcomes. Positively influencing social
determinants of health is necessary for improving outcomes and reducing the impact of health on economic
equity. Beyond improving the social determinants of health, there must be access to quality, affordable
health care. This extends beyond just the availability of health insurance. Residents must be able to afford
the cost of, and physically access, medical care. Depending on the type of health insurance plan, out-of-
pocket costs can be considerable, and impair the ability of low-income Detroiters to access quality care.
OVERVIEW
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HEALTH
INDICATORS
Life Infant Percentage of residents with
expectancy mortality health insurance coverage
82
LIFE EXPECTANCY
HEALTH
What is it?
The number of years a person born today can expect to live.
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Geographic equity Racial / ethnic equity
HEALTH
The life expectancy for a Detroit resident is 73 years, two In Detroit, the life expectancy for African Americans is
years lower than for Wayne County, and five years lower 72 years old, seven years lower than for white residents.
than for the state. Over the past decade, the life expectancy for white
residents in Detroit has increased by just under five years,
while remaining unchanged for African-American residents.
Detroit 73 Detroit 73
Wayne
75 White 79
County
African
Michigan 78 American 72
84
INFANT MORTALITY
HEALTH
What is it?
The number of infants who died prior to 1 year of age Infant mortality rate per 1,000 live births
per 1,000 live births. 2010 to 2019
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Geographic equity Racial / ethnic equity
HEALTH
The infant mortality rate is higher in Detroit Within Detroit, there are disparities in infant mortality rates by race,
than in other geographies. The current infant although the gap closed significantly from 2018 to 2019. The infant
mortality rate in the city is 1.5 times higher than mortality rate for African-American infants, at 12.3 infant deaths
the region and 1.7 times higher than the state. per 1,000 live births, is 1.25 times the rate for white infants, which
is at 9.7 infant deaths per 1,000 live births. The African-American
infant mortality rate declined 14% since 2010, with a sharp decrease
from 2018 to 2019. Though the recent declines are promising, the
infant mortality rate for African Americans remains high.
Infant mortality rate per 1,000
live births
2019 Infant mortality rate by race per 1,000 live births
2010 to 2019
Detroit 11
U.S. 5.6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Michigan Resident Birth and Death Files, Division for Source: Michigan Resident Birth and Death Files, Division for Vital Records & Health Statistics, Michigan
Vital Records & Health Statistics, Michigan Department of Department of Health & Human Services, 2010 to 2019
Health & Human Services, 2019 Note: 2011 white infant mortality rate is not available
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PERCENTAGE OF RESIDENTS WITH
HEALTH
HEALTH INSURANCE COVERAGE
What is it?
Share of residents with health insurance coverage. Health insurance
coverage rate
2010 and 2019
Why is it important for economic equity?
92%
Health insurance coverage is an important measure of access to health care and overall
79%
economic well-being. Health insurance coverage can also be an indicator of job quality,
depending on whether an employer provides insurance coverage.
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Geographic equity Health insurance coverage rate
HEALTH
2019
In Detroit, the share of residents with health
insurance is slightly lower than that of the region.
Currently, 92% of Detroiters have health insurance Detroit 92%
coverage, compared to 94% of residents across the
region. However, Detroiters are insured at a slightly Metro
higher rate than the country as a whole, at 91%. Detroit 94%
Michigan 94%
U.S. 91%
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NEIGHBORHOODS & HOUSING
NEIGHBORHOODS
& HOUSING
89
NEIGHBORHOODS & HOUSING
A more economically equitable Detroit
would invest in its strong and vibrant
middle-class neighborhoods.
90
NEIGHBORHOODS & HOUSING
OVERVIEW
91
NEIGHBORHOODS & HOUSING
INDICATORS
Share of Residential Homeownership Housing
population living vacancy rate cost-burden
in a middle-class
neighborhood
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SHARE OF POPULATION LIVING IN
Note: To learn more about the African-American middle class in Detroit see DFC’s report: Growing Detroit’s African-American Middle Class.
93
Geographic equity
59%
43%
23%
8%
5% 4%
1%
94
RESIDENTIAL VACANCY RATE
95
Geographic equity
Detroit 29%
26%
Metro
Detroit 12%
10%
2010 2019
Homeownership is of extra importance in a city like Detroit, which has one of the Source: American Community Survey,
highest rates of homeownership for African Americans compared to other large 2010 and 2019
cities. Detroit reached its homeownership peak in 2000, with more 53% of African-
American households owning their home. Since then, there has been a decline
in homeownership, caused by a wave of foreclosures, and an increase in vacancy
across the city, wiping out a substantial amount of wealth across the city.vii
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Geographic equity Homeownership rate
African 53%
American 53%
52%
47%
Hispanic 46%
2010 2019
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HOUSING COST-BURDEN
The calculation of the share of renters that are cost-burdened excludes renters whose gross rent as a
12
percentage of household income was not calculated because the renter did not pay rent or have income.
99
Geographic equity Housing cost-burden by tenure
Metro Metro
12% 8% 20% 23% 26% 49%
Detroit Detroit
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CONCLUSION
CONCLUSION
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CONCLUSION
CONCLUSION
Achieving economic equity in Detroit is both necessary
and attainable. Though progress has been made over the
past decade in improving the economies of Detroit and the
region, the economic equity data in this report, the recent
COVID-19 pandemic, and the nationwide racial awakening
have displayed clearly that challenges endure. As we begin
the recovery from the pandemic, we must ensure that we are
not only focused on growth, but also on ensuring that growth
is equitable, just and reparative.
Although there are many issues facing the city and its
residents, the disparities in income and wealth, both across
the region and by race and ethnicity, are paramount.
Increasing incomes will require strategies to both increase
educational attainment and to increase the number of
middle-wage jobs. All Detroiters must have the ability to
enter the middle class, meet their unique needs, and fully and
fairly participate in all aspects of economic life, regardless
of educational achievement. The region must attract more
middle-wage jobs that provide a middle-class salary to
those without a college degree, while also attracting jobs
and growing small businesses that allow for income growth.
At the same time, the educational system must adequately
prepare Detroiters to participate in the workforce. Detroit
must also be a place that grows, retains, and attracts the
middle class by strengthening its middle-class neighborhoods.
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The collective effort to build a more economically equitable Detroit must include strategies that:
CONCLUSION
Improve educational outcomes at all levels. Improve access to affordable quality health care.
From an early age, students must be building the skills The city must be a place where all residents are able to
necessary to climb the ladder of educational success. access affordable, quality health care. Access to health
Students must be provided with the tools and resources care includes not just the provision of health insurance or
necessary to progress through their education and build the increasing the number of primary care physicians in the city,
skills necessary to succeed and achieve their goals. it also includes ensuring that residents are able to access
benefits, such as paid leave, so that they can utilize their
health care and manage their health.
Increase the number and share of middle-wage jobs.
Though an important factor, education cannot be the
only path to success. Every worker in the city and region, Grow and strengthen middle-class neighborhoods.
regardless of education, should be able to earn at least a Strong middle-class neighborhoods are the backbone of an
middle-class wage. Increasing middle-wage jobs will be a economically equitable city. The continued drain of African-
critical component of ensuring economic equity, but only if American middle-class households out of Detroit prevents
it is also paired with efforts to eliminate disparities in wages the city from growing its middle-class neighborhoods. There
for African-American and Hispanic Detroiters. Finally, high must be continued investment in Detroit’s neighborhoods.
quality jobs must be accessible to Detroiters regardless of The city’s neighborhoods should provide residents with not
race or neighborhood origin, eliminating the labor market only a high-quality, amenity-rich place to live, but also
penalty that Detroiters of every education level have provide the opportunity to build wealth through their
historically encountered. investments in housing.
Increase capital access and supports for Increase access to quality affordable housing.
minority-owned small businesses. Access to quality affordable housing and the stability it
An intentional and coordinated effort to grow and support provides is a critical component to the health and safety
African-American and Hispanic small businesses must be a of families, building strong neighborhoods and a more
priority. To do this, there must be an increase in the amount economically equitable city. There must be a coordinated
of capital available to start and expand businesses, and the strategy to increase access to high quality stable housing
removal of barriers that limit minority-owned small businesses for all residents across housing types and price points.
from accessing support and growth opportunities.
103
The goal of creating an economically equitable city and
CONCLUSION
region is one that cannot be undertaken by any one
organization or group alone. Now is the opportunity
to change course and work together toward a more
economically equitable future. No longer can the only focus
be on growth — there must be a renewed focus on ensuring
that growth is not only equitable, but that it is just and
reparative, and that all residents have the opportunity
to participate. All sectors have an active role to play in
developing solutions. It is through this collective action that
we can and will build an economically equitable future
for Detroit.
104
REFERENCES
https://www.cdc.gov/socialdeterminants/about.html
v
Woolf, S. H., & Schoomaker, H. (2019). Life Expectancy and Mortality Rates in the United States, 1959-2017.
JAMA, 322(20), 1996–2016. https://doi.org/10.1001/jama.2019.16932
Mallach, Alan (2012) The Empty House Next Door: Understanding and Reducing Vacancy and
vi
How the housing bust widened the wealth gap for communities of color.
Retrieved April 19, 2021, from https://www.zillow.com/research/housing-bust-wealth-gap-race-23992/
105
APPENDIX
13
https://detroitmi.gov/departments /detroit-department-transportation/transportation-fares
14
Data on mode splits and travel times is from the American Community Survey IPUMS 5-year release dataset. It is worth noting that the driver of the
difference in the out of pocket costs on a per hour basis for automobile commuters for Detroit and the rest of the MSA is the cost of automobile
insurance – the other costs are the same on a per hour basis for the two geographies.
106
2990 W. Grand Blvd. #2
Detroit, MI 48202
www.detroitfuturecity.com
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