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Title: A Note on the Changes in the Relative Wages of LEP Hispanic Men between 1980 and 2000

Citation Type: Journal Article

Publication Year: 2006

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Abstract: Using the Juhn-Murphy-Pierce (1993) wage decomposition technique, we analyze changes in the earnings differential between Hispanic and non-Hispanic white men in the United States between 1980 and 2000. The empirical findings, based on decennial census data, indicate that limited-English-proficient (LEP) Hispanic men gained in their relative earnings position compared to English-fluent Hispanics during the 1990s. Our interpretation is that the relative demand for LEP Hispanic workers has risen in recent years.Recent demographic and socioeconomic shiftsincluding the rapid Hispanic population growth, expanding trade and production opportunities in the Spanish language, and changes in immigration policy and enforcementhave presumably affected the relative earnings of limited-English-proficient (LEP) Hispanic workers in the United States. Employing U.S. decennial census data from 1980, 1990, and 2000, this study investigates changes in the earnings structure of LEP Hispanic men vis--vis those fluent in the English language.The population analyzed includes United States- and foreign-born Hispanic men aged 2564 who reported wage and salary income, and who worked at least 20 hours a week for 32 weeks or more in the year prior to the census. We use the convention of identifying the LEP as those who do not speak the English language well. The base group of comparison contains men often considered the most assimilated in the United StatesU.S.-born non-Hispanic whites who only speak English at home (e.g., McManus, Gould, and Welch 1983). A perusal of the sample summary statistics (details are available) indicates that the earnings gap between non-Hispanic White and Hispanic men has widened since 1980. The averages of the natural logarithm of hourly earnings (defined as annual wage and salary income divided by total hours worked) of non-Hispanic White, LEP Hispanic, and English-fluent Hispanic men in 1980 were 2.04, 1.44, and 1.81; by 2000, these earnings rose to 2.86, 2.19, and 2.55.These figures indicate a similar growth in the Hispanic/non-Hispanic White earnings gap for the LEP and the English-fluent between 1980 and 2000, despite the increasing returns to skill that occurred during this time (e.g., Welch 2000). Perhaps the relatively large increase in the mean education levels of the LEP helped counter some of the higher skill returns. Between 1980 and 2000, the average schooling of LEP Hispanics rose by 1.3 years (from 6.5 to 7.8 years), compared to 0.8 years (from 13.1 to 13.9 years) for non-Hispanic Whites, and 0.6 years (from 11.2 to 11.8) for English-fluent Hispanics.

User Submitted?: No

Authors: Davila, Alberto; Mora, Marie T.

Periodical (Full): Industrial Relations: A Journal of Economy and Society

Issue: 2

Volume: 45

Pages: 169-172

Data Collections: IPUMS USA

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

Countries: United States