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Title: Hispanic Ethnicity, Gender, and the Change in the LEP-Earnings Penalty in the United States During the 1990s

Citation Type: Journal Article

Publication Year: 2006

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Abstract: Objective. Although studies suggest that the earnings of limited-English-proficient (LEP) Hispanic men have recently improved relative to the English fluent, it remains unclear as to whether specific Hispanic groups experienced similar improvements. Methods. Using 1990 and 2000 U.S. Census data, this study employs regression, wage decomposition, and quantile regression analyses to examine how gender and Hispanic ethnicity relate to the LEP-earnings penalty. Results. The LEP-earnings penalty fell significantly for Mexican-American men between 1990and 2000. However, additional results suggest that this penalty increased for Cuban-American men and women (and, to a lesser extent, for Mexican-American women). Conclusions. Expanding trade and ethnic networks as well as reduced statistical discrimination have not systematically benefited all LEP Hispanic populations. Therefore, policies designed to enhance English-language proficiency may yield heterogeneous socioeconomic outcomes along the ethnic, gender, and income class dimensions.Poor English-language proficiency has traditionally been associated with lower average labor market earnings in the United States. Explanations for this relationship suggest that: (1) the lack of fluency in a country's majority language dampens trade and production opportunities (McManus, Gould, and Welch, 1983); (2) workers with limited English skills have imperfect labor market information such that they accept employment that may not match their skills (Grenier, 1984); (3) individuals with poor English ability face occupational crowding (Tienda and Neidert, 1984); and (4) employers use English-language fluency as a signal to statistically discriminate against limited-English-proficient (LEP) workers (Phillips and Massey, 1999; Dvila, Bohara, and Senz, 1993; Perotti, 1992).Recent studies question the magnitude of this LEP-earnings penalty. For example, Mora and Dvila (2004) argue that increased trade opportunities in the Spanish language, the growth in Hispanic networks, and reduced statistical discrimination following an immigration-enforcement decline dampened the LEP penalty accrued by Hispanic men in recent years. Their study, however, only focuses on men, and it ignores differences between specific ethnic populations by combining all LEP Hispanics into a composite group.Socioeconomic and demographic changes that impact the earnings of LEP workers in the United States might not be neutral with respect to gender or Hispanic ethnicity. We employ 1990 and 2000 U.S. Census data to examine whether the LEP-wage penalty similarly changed between the three largest Hispanic groups (Mexican American, Cuban American, and Puerto Rican) during the 1990s, and whether these potential penalty changes differed with respect to gender. Our findings indicate that the average LEP-earnings penalty significantly declined for Mexican-American men during the 1990s when controlling for other characteristics, but did not for Mexican-American women nor for Cuban-American and Puerto Rican workers. Moreover, wage decomposition and quantile regression analyses indicate that LEP Cuban-American men and women (and, to a lesser extent, LEP Mexican-American women) lost significant ground vis--vis the English fluent with respect to earnings between 1990 and 2000.

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Authors: Davila, Alberto; Mora, Marie T.

Periodical (Full): Social Science Quarterly

Issue: 5

Volume: 87

Pages: 1295-1318

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration, Poverty and Welfare, Race and Ethnicity

Countries: United States