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Hispanics in the U.S. Labor Market: A Tale of Three Generations

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Abstract

Immigrants? descendants typically assimilate toward mainstream social and economic outcomes across generations. Hispanics in the United States are a possible exception to this pattern. Although there is a growing literature on intergenerational progress, or lack thereof, in education and earnings among Hispanics, there is little research on employment differences across immigrant generations. Using data from 1996 to 2017, this study reveals considerable differences in Hispanics? employment rates across immigrant generations. Hispanic immigrant men tend to have higher employment rates than non-Hispanic whites and second- and third-plus generation Hispanics. Hispanic immigrant women have much lower employment rates, but employment rates rise considerably in the second generation. Nonetheless, U.S.-born Hispanic women are less likely than non-Hispanic white women to work. The evidence thus suggests segmented assimilation, in which the descendants of Hispanic immigrants have worse outcomes across generations. While relatively low education levels do not appear to hamper Hispanic immigrants? employment, they play a key role in explaining low levels of employment among Hispanic immigrants? descendants. Race and selective ethnic attrition may also contribute to some of the patterns uncovered here.

Suggested Citation

  • Pia M. Orrenius & Madeline Zavodny, 2018. "Hispanics in the U.S. Labor Market: A Tale of Three Generations," Working Papers 1809, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:feddwp:1809
    DOI: 10.24149/wp1809
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    References listed on IDEAS

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    1. James P. Smith, 2003. "Assimilation across the Latino Generations," American Economic Review, American Economic Association, vol. 93(2), pages 315-319, May.
    2. George J. Borjas, 2007. "Mexican Immigration to the United States," NBER Books, National Bureau of Economic Research, Inc, number borj06-1.
    3. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-1268, December.
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    More about this item

    Keywords

    Hispanics; immigrant generations; assimilation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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

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