For more than a decade, Chicago-based Ariel Investments has examined the investing habits of African-Americans. The company has made it part of its mission to increase minority participation in the stock market and 401(k) plans so minority investors will have a secure retirement.

Now, Ariel Education Initiative, the company’s nonprofit affiliate, and Hewitt Associates, a human resources consulting firm, have released what they describe as a groundbreaking study showing that minorities still aren’t investing in corporate 401(k)s at the same rate as whites and Asians.

The two companies found after analyzing 401(k) information for nearly 3 million employees at 57 large, primarily Fortune 500 businesses, that regardless of age or income, African-American and Hispanic workers have lower participation rates and contribute less to their 401(k) plans than their white and Asian counterparts.

Specifically, 66 percent of African-American employees and 65 percent of Hispanic employees participate in their company’s defined contribution plans, compared with 77 percent of white workers and 76 percent of Asian workers.

Lack of information

I don’t doubt Ariel’s commitment to investor education. But we’ve known for at least 10 years that minorities are not investing at the same rate as whites. The more pertinent question is: Why is there still a gap?

That’s a question the study doesn’t answer. In an interview, Mellody Hobson, president of Ariel Investments, said she believes minorities are investing less for five reasons:

• They don’t know enough about investing.

• They have misinformation about investing in a 401(k) plan.

• They have trust issues.

• When they do invest, minorities choose more conservative options such as investing in real estate and insurance products.

• They have less exposure to the stock market.

Every reason Hobson listed reflects on the investing acumen of minority investors. However, studies show many companies haven’t done the best job of explaining investment options or providing advice to all of their 401(k) participants. Is it so hard to appreciate that many new investors would be leery of investing their money in the stock market, especially of late? And the numerous scandals in the investment community don’t exactly engender trust among a group of people who have experienced institutional mistreatment for decades.

Generational differences

What I’m sure Ariel and Hewitt would find if they dug deeper is that class, culture and socioeconomic conditions are determining factors in how much people invest. For example, are the data comparing first-generation minority investors to second- or third-generation middle- or upper-income investors?

First-generation investors may have significantly more debt — such as student loans — than second-generation investors, who may have been able to rely on an inheritance or established investment portfolios to fund a college education for their children.

First-generation investors may be more likely to use money they would invest to help extended family members. Could it be that some Hispanic employees may be contributing less to their 401(k) plans because they are sending money to relatives here and abroad?

It’s also likely that first-generation investors are spending more than they should on consumer purchases, which isn’t unusual for a generation new to better-paying corporate jobs.

Given the many variables, we ought to be wary of these reports measuring minorities against whites. Without a deeper understanding of what motivates investors, the blanks can’t be filled in and companies can’t design appropriate marketing or education programs to boost 401(k) participation.