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How Foreign- and U.S.-Born Latinos Fare during Recessions and Recoveries

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  • Pia Orrenius
  • Madeline Zavodny

Abstract

Latinos make up the nation’s largest ethnic minority group. The majority of Latinos are U.S. born, making the progress and well-being of Latinos no longer just a question of immigrant assimilation but also of the effectiveness of U.S. educational institutions and labor markets in equipping young Latinos to move out of the working class and into the middle class. One significant headwind to progress among Latinos is recessions. Economic outcomes of Latinos are far more sensitive to the business cycle than are outcomes for non-Hispanic whites. Latinos also have higher poverty rates than whites, although the gap had been falling prior to the COVID-19 pandemic. Deep holes in the pandemic safety net further imperiled Latino progress in 2020 and almost surely will in 2021 as well. Policies that would help working-class and poor Latinos include immigration and education reform and broader access to affordable health care.

Suggested Citation

  • Pia Orrenius & Madeline Zavodny, 2021. "How Foreign- and U.S.-Born Latinos Fare during Recessions and Recoveries," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 193-206, May.
    • Handle: RePEc:sae:anname:v:695:y:2021:i:1:p:193-206
    DOI: 10.1177/00027162211028827
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    References listed on IDEAS

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    1. Couch, Kenneth A. & Fairlie, Robert W. & Xu, Huanan, 2020. "The Impacts of COVID-19 on Minority Unemployment: First Evidence from April 2020 CPS Microdata," IZA Discussion Papers 13264, Institute of Labor Economics (IZA).
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    Cited by:

    1. Lee, Taehoon & Peri, Giovanni & Viarengo, Martina, 2022. "The gender aspect of migrants’ assimilation in Europe," Labour Economics, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    Hispanics; immigrants; working class; business cycle;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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