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8 Economic Well-Being--Cordelia Reimers
Pages 291-361

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From page 291... ... Building on those earlier chapters, this chapter examines the outcome of these processes as reflected in total household income, not just earnings, which were examined in Chapter 7. Household income is a more comprehensive measure of economic well-being than individual earnings because it includes the earnings of all household members, plus unearned income from public benefits and other sources. Read the entire page →
From page 292... ... The U.S. Census Bureau publishes data annually on individual, family, and household income and poverty rates for Hispanics overall and separately for Mexicans, Puerto Ricans, Cubans, Central and South Americans (combined) Read the entire page →
From page 293... ... It is useful to examine whether the data support this conjecture. Preliminary analysis of this data set revealed that the national-origin groups in Central America and in South America resemble each other enough in terms of economic status that they can be combined into these two groups, but that Central Americans and South Americans are quite different from each other and Dominicans differ from both. Read the entire page →
From page 294... ... These underlying factors lead to striking similarities between Mexicans and Central Americans, between Puerto Ricans and Dominicans, and between Cubans and South Americans in their levels of household income and its sources. At the same time, they result in remarkable contrasts among these pairs of Hispanic-origin groups. Read the entire page →
From page 295... ... Dominicans and Puerto Ricans have even lower incomes than Mexicans. Immigrants from the Dominican Republic have the lowest median household incomes among first-generation Latinos ($24,000) Read the entire page →
From page 296... ... . All U.S.-born Latino 5Foreign-born Salvadorans and Guatemalans are worse off than other Central Americans in terms of per capita income, although their total household incomes are similar, as shown in Appendix Table A8-1. Read the entire page →
From page 297... ... . Lower median incomes are reflected in higher poverty rates and vice versa, with one exception: in the first generation, the Cubans' poverty rate is as high as that of Central Americans, despite the fact that the Cubans' median per capita income is much higher (Table 8-2) Read the entire page →
From page 298... ... * 0.081 Persons in Female-Headed Families Mexico 0.476 0.477 0.380 Central America 0.317 0.379 Puerto Rico 0.519 0.441 0.471 Dominican Republic 0.471 0.584 Cuba 0.374 0.343 South America 0.246 0.252 All Hispanics (self-identity) Read the entire page →
From page 299... ... ECONOMIC WELL-BEING 299 Generation 2nd: 3+: 1st: U.S.-Born, U.S.-Born, Foreign- Foreign- Both Parents Born Born Parent U.S.-Born* Children Ages 0�17 0.426 0.342 0.268 0.296 0.248 0.536 0.363 0.356 0.481 0.422 0.312 0.178 0.044 0.187 0.131 0.399 0.331 0.269 0.353 0.106 Persons in Married-Couple Families 0.228 0.210 0.117 0.138 0.135 0.142 0.097 0.114 0.179 0.142 0.115 0.055 0.013 0.087 0.070 0.188 0.187 0.110 0.080 0.037 Read the entire page →
From page 300... ... This paradox can be explained by the characteristics reported in Chapters 3 and 5: Mexican households are less likely to be female-headed, are more likely to be extended, and are concentrated in different locations than Puerto Ricans and Domini 9These percentages are derived by dividing the value in Appendix Table A8-7 by the value in Table 8-1. Read the entire page →
From page 301... ... In addition to education, legal status, and phenotype, which affect earning capacity, household structure also plays a major role, as the high femaleheadship rates of Puerto Ricans and Dominicans reduce their median household incomes. Sources of Household Income For a deeper understanding of why household incomes vary across nationalities and generations, it is useful to consider three sources of income: earnings, public benefits, and the incomes of extended household members (defined as persons of working age who are living in the household, other than the head and his or her spouse) Read the entire page →
From page 302... ... Income from public benefits, in turn, depends on household structure, earnings, and other income (which in turn depend on household structure) as well as on legal status, time in the United States, and the state of residence. Read the entire page →
From page 303... ... Latino households headed by working-age adults have an unusually large number of workers. Except for Puerto Ricans and Dominicans, all Latino groups in all generations have more earners per household than third (or higher) Read the entire page →
From page 304... ... Public Benefits and Other Unearned Income Reflecting their high poverty rates, Dominicans and Puerto Ricans have the highest rates of public benefits receipt among Latinos. A total of 50 and 41 percent, respectively, of households headed by first-generation Dominicans and Puerto Ricans receive benefits from at least one of the major needs-tested programs: welfare, Supplemental Security Income (SSI) Read the entire page →
From page 305... ... 0.036 0.073 Puerto Rico Earnings 0.702 0.783 0.810 Public benefits* Read the entire page →
From page 306... ... 0.088 * The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 307... ... . Because their poverty rates are similar to Puerto Ricans and Dominicans, one might expect Mexicans to receive public benefits at similar rates. Read the entire page →
From page 308... ... The Dominican case is puzzling, but the South Americans are among the Hispanic subgroups with the highest incomes, a significant share of which may come from investments. Foreign-born Mexicans and Central Americans, in contrast, derive exceptionally low shares of household income (less than 4 percent) Read the entire page →
From page 309... ... One way in which Puerto Ricans differ from Dominicans is that, in the first generation, Puerto Ricans (like Cubans and South Americans) rely less on extended-household income pooling. Read the entire page →
From page 310... ... * 0.075 0.058 Other relatives of head 0.062 0.016 Unmarried partner of head 0.019 0.038 Other nonrelatives 0.051 0.031 Puerto Rico Head's children and parents* Read the entire page →
From page 311... ... The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 312... ... relatives contribute 5 to 7 percent of household income for foreign-born Mexicans, Central Americans, and Dominicans, but less than 4 percent of household income for Puerto Ricans, Cubans, and South Americans. Except for Puerto Ricans, the share from horizontal relatives also drops sharply in the U.S.-born generation. Read the entire page →
From page 313... ... Dominicans and Puerto Ricans are much more dependent on public benefits than the others. Mexican, Central American, and Dominican immigrants get a larger share from extended-household members than other Hispanics, blacks, and whites. Read the entire page →
From page 314... ... that older Latino immigrants of all national origins are more likely to be poor than white non-Hispanics (8 percent of whom are poor) , but it is somewhat surprising that in most cases Latinos' poverty rates do not exceed the rate 15According to the 1998�2002 CPS data used in this chapter, only about 5 percent of all Latinos and about 10 percent of Latino household heads are currently age 65 or older. Read the entire page →
From page 315... ... . The exceptions are immigrants from the Dominican Republic and Puerto Rico, the poorest elderly Latinos, whose poverty rates are 37 and 27 percent, respectively. Read the entire page →
From page 316... ... Perhaps the fact that older Latino immigrants of other national origins are no more likely to be poor than blacks, despite the fact that those who came to the United States in middle age or later are likely to get little or nothing from Social Security and pensions, is because they are more likely to live with their children who are not poor.17 Sources of Household Income Retirement income for non-Hispanic whites in America rests on the proverbial three-legged stool, comprising Social Security, private pensions, and asset income from accumulated savings. Given Latinos' low rates of pension coverage noted above, it is not surprising that employer pensions are less important as a source of income for elderly households in all foreign-born Hispanic subgroups and for U.S.-born Mexicans than for whites or blacks (Table 8-6) Read the entire page →
From page 317... ... * 0.199 Puerto Rico Social Security 0.634 SSI 0.125 Private pensions 0.053 Extended-household members* Read the entire page →
From page 318... ... 0.062 * The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 319... ... This may be due to the lack of coverage of jobs in agriculture and domestic service often held by low-skilled Hispanic immigrants, as well as the fact that immigrants who arrive in middle age may not work long enough in covered jobs to qualify for Social Security.20 Nevertheless, Social Security is the source of at least half of average household income for all groups except foreign-born Central Americans, South Americans, and Dominicans, who derive only 42 to 46 percent of the average household's income from this source (Table 8-6) Read the entire page →
From page 320... ... Most of this comes from vertical relatives, who contribute 19 percent of the income of older Mexican immigrants' households and 12 to 15 percent for U.S.-born Mexicans and foreign-born Central and South Americans and Dominicans (see Appendix Table A8-13) Read the entire page →
From page 321... ... U.S.-born Mexicans and Puerto Ricans have slightly lower median per capita incomes than blacks, despite having higher household incomes, because the Hispanics have larger households. South Americans and Cubans who were born or grew up in the United States are at the top, and the 22 These shares may understate the role of household extension in supporting the Latino elderly because they refer to households headed by older Latinos. Read the entire page →
From page 322... ... The differences in income among nationalities and generations reflect the variation in their education levels and household size and structure. For example, recent immigrants from Mexico, Central America, and the Dominican Republic have been predominantly low skilled, with consequently low household incomes. Read the entire page →
From page 323... ... The share of their household income from Social Security ranges from 42 to 63 percent, being smallest for foreign-born Central and South Americans and largest for island-born Puerto Ricans, whose share from Social Security is even larger than blacks. These differences reflect the variation in income from other sources, including that provided by younger household members, as well as differences in the elderly Latinos' Social Security benefits. Read the entire page →
From page 324... ... In the absence of a reversal of this trend, the future economic well-being of many Latinos will depend on improvements in women's wages and public benefit programs, as well as on removing the barriers to educational attainment that are described in Chapter 6. It is too soon to tell what the long-term effects of welfare reform will be on the Latino groups that depend heavily on public benefits, particularly Dominicans and Puerto Ricans. Read the entire page →
From page 325... ... Third (or higher) -generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 326... ... . Immigration and changing patterns of extended family household structure in the United States: 1970�1990. Read the entire page →
From page 327... ... . Impact of unreported Social Security earnings on people of color and women. Read the entire page →
From page 328... ... Median Total Household Income (2002 $) Mexico $28,443 $31,565 $37,890 $44,147 $39,306 El Salvador, Guatemala 32,506 37,666 48,805 44,022 Other Central America 32,460 39,699 62,358 Puerto Rico 26,114 28,649 36,703 38,603 35,553 Dominican Republic 22,184 29,587 33,626 Cuba 28,194 64,396 65,138 54,303 Colombia 36,264 50,990 Peru, Ecuador 37,840 44,750 50,791 52,085 Other South America 49,997 53,277 Hispanics (self-identity) Read the entire page →
From page 330... ... * Persons in Female-Headed Families Mexico 0.480 0.475 0.525 0.392 0.380 El Salvador, Guatemala 0.310 0.321 0.474 0.286 Other Central America 0.341 0.309 0.407 0.251 Puerto Rico 0.525 0.531 0.450 0.423 0.471 Dominican Republic 0.455 0.497 0.587 0.569 Cuba 0.420 0.281 0.366 0.315 Colombia 0.289 0.283 0.347 Peru, Ecuador 0.247 0.183 0.268 0.194 Other South America 0.212 0.220 Hispanics (self-identity) Read the entire page →
From page 331... ... ECONOMIC WELL-BEING 331 Generation 2.0: 2.5: 3+: 1.0: 1.5: U.S.-Born, U.S.-Born, U.S.-Born, Arrived Arrived Both Parents 1 Parent Both Parents as Adult as Child Foreign-Born U.S.-Born U.S.-Born* Children Ages 0�17 0.426 0.371 0.267 0.268 0.291 0.272 0.165 0.302 0.300 0.173 0.536 0.443 0.278 0.356 0.481 0.438 0.377 0.312 0.213 0.135 0.044 0.205 0.177 0.079 0.191 0.167 0.102 0.165 0.092 0.096 0.399 0.354 0.265 0.269 0.353 0.106 Persons in Married-Couple Families 0.217 0.240 0.243 0.133 0.117 0.135 0.124 0.168 0.069 0.138 0.169 0.192 0.083 0.160 0.129 0.113 0.071 0.114 0.186 0.171 0.151 0.117 0.134 0.080 0.073 0.025 0.013 0.111 0.091 0.085 0.050 0.083 0.097 0.122 0.058 0.066 0.073 0.049 0.010 0.179 0.201 0.211 0.120 0.110 0.080 0.037 SOURCE: Pooled March CPS files, 1998�2002, using person weights. Read the entire page →
From page 332... ... * The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 333... ... Other South America Earnings 0.899 0.886 Public benefits* Read the entire page →
From page 334... ... * Other relatives of head 0.049 0.061 0.038 0.011 Unmarried partner of 0.015 0.020 0.050 0.036 head Other nonrelatives 0.042 0.042 0.056 0.022 Puerto Rico Head's children & 0.090 0.086 0.054 0.052 0.061 parents* Read the entire page →
From page 335... ... * Other relatives of head 0.047 0.059 0.037 0.003 Unmarried partner of 0.006 0.018 0.034 0.021 head Other nonrelatives 0.036 0.033 0.020 0.068 Other South America Head's children & 0.053 0.044 parents* Read the entire page →
From page 336... ... The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 337... ... entered America Guatemala America sample and combined Republic (self-identity) Read the entire page →
From page 338... ... * 0.265 Puerto Rico Social Security 0.618 SSI 0.150 Private pensions 0.044 Extended-household members* Read the entire page →
From page 339... ... SOURCE: Pooled March CPS files, 1998�2002. Means are simple averages across households, using household weights. Read the entire page →
From page 340... ... * stamps, Pooled Origin Pooled Central Rico samples Ecuador South non-Hispanics non-Hispanics Boxes Salvador, * Read the entire page →
From page 341... ... * Pooled Origin Central Rico samples Ecuador South non-Hispanics non-Hispanics Boxes Salvador, * Read the entire page →
From page 342... ... * The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. Read the entire page →
From page 343... ... SOURCE: Pooled March CPS files, 1998�2002. Means are simple averages across households, using household weights. Read the entire page →
From page 344... ... * Fraction Receiving Food Stamps Mexico 0.108 0.105 0.112 0.103 0.130 El Salvador, Guatemala 0.062 0.079 0.078 0.077 Other Central America 0.100 0.062 0.022 Puerto Rico 0.219 0.203 0.196 0.099 0.176 Dominican Republic 0.266 0.238 0.166 Cuba 0.151 0.061 0.039 0.043 Colombia 0.049 0.015 Peru, Ecuador 0.042 0.033 0.053 0.000 Other South America 0.008 0.038 Hispanics (self-identity) Read the entire page →
From page 345... ... ECONOMIC WELL-BEING 345 2.0: 2.5: 3+: 1.0: 1.5: U.S.-Born, U.S.-Born, U.S.-Born, Arrived Arrived Both Parents 1 Parent Both Parents as Adult as Child Foreign-Born U.S.-Born U.S.-Born* Fraction Receiving SSI 0.031 0.022 0.039 0.049 0.045 0.015 0.025 0.039 0.009 0.043 0.038 0.010 0.174 0.113 0.088 0.031 0.062 0.123 0.085 0.062 0.087 0.039 0.021 0.000 0.064 0.019 0.050 0.025 0.016 0.014 0.009 0.021 0.049 0.039 0.050 0.042 0.045 0.082 0.028 Fraction Receiving Medicaid 0.285 0.279 0.243 0.202 0.218 0.206 0.259 0.140 0.241 0.189 0.168 0.065 0.404 0.385 0.331 0.236 0.248 0.480 0.451 0.348 0.273 0.132 0.078 0.058 0.235 0.140 0.220 0.183 0.103 0.063 0.086 0.105 0.277 0.277 0.251 0.195 0.209 0.263 0.098 continues Read the entire page →
From page 346... ... Fraction Receiving Public Assistance/Welfare, SSI and/or Food Stamps Mexico 0.139 0.130 0.144 0.137 0.166 El Salvador, Guatemala 0.079 0.103 0.117 0.082 Other Central America 0.132 0.093 0.044 Puerto Rico 0.325 0.264 0.244 0.120 0.222 Dominican Republic 0.334 0.282 0.194 Cuba 0.200 0.088 0.055 0.043 Colombia 0.105 0.034 Peru, Ecuador 0.085 0.054 0.069 0.014 Other South America 0.015 0.068 Hispanics (self-identity) Read the entire page →
From page 347... ... ECONOMIC WELL-BEING 347 2.0: 2.5: 3+: 1.0: 1.5: U.S.-Born, U.S.-Born, U.S.-Born, Arrived Arrived Both Parents 1 Parent Both Parents as Adult as Child Foreign-Born U.S.-Born U.S.-Born* Fraction Receiving Public Assistance/Welfare, SSI, Food Stamps and/or Medicaid 0.304 0.295 0.259 0.214 0.241 0.226 0.265 0.146 0.187 0.256 0.203 0.065 0.423 0.401 0.344 0.252 0.279 0.505 0.478 0.360 0.293 0.132 0.085 0.092 0.235 0.140 0.234 0.183 0.113 0.063 0.090 0.113 0.295 0.291 0.266 0.207 0.232 0.299 0.106 Fraction Receiving Medicare 0.052 0.047 0.070 0.075 0.066 0.039 0.066 0.094 0.041 0.055 0.072 0.065 0.143 0.128 0.074 0.080 0.072 0.107 0.074 0.101 0.180 0.134 0.060 0.055 0.101 0.044 0.083 0.078 0.075 0.027 0.052 0.078 0.072 0.067 0.065 0.073 0.066 0.100 0.065 SOURCE: Pooled March CPS files, 1998�2002, using household weights. Read the entire page →
From page 348... ... Fraction of Household Income Mexico Social Security 0.021 0.020 0.033 0.039 0.039 SSI 0.009 0.007 0.014 0.021 0.018 Public assistance/welfare 0.022 0.023 0.024 0.018 0.023 El Salvador, Guatemala Social Security 0.016 0.013 0.038 SSI 0.004 0.014 0.009 Public assistance/welfare 0.011 0.024 0.019 Other Central America Social Security 0.024 0.036 0.006 0.034 SSI 0.021 0.009 0.022 0.001 Public assistance/welfare 0.014 0.009 0.018 0.004 Puerto Rico Social Security 0.099 0.076 0.036 0.071 0.029 SSI 0.097 0.059 0.047 0.012 0.030 Public assistance/welfare 0.066 0.055 0.076 0.027 0.068 Dominican Republic Social Security 0.052 0.020 0.019 SSI 0.057 0.035 0.035 Public assistance/welfare 0.089 0.082 0.046 Cuba Social Security 0.081 0.039 0.011 0.017 SSI 0.031 0.008 0.003 0.000 Public assistance/welfare 0.013 0.012 0.005 0.002 Colombia Social Security 0.033 0.011 SSI 0.022 0.002 Public assistance/welfare 0.006 0.005 Peru, Ecuador Social Security 0.038 0.022 0.006 0.000 SSI 0.013 0.007 0.006 0.003 Public assistance/welfare 0.007 0.003 0.000 0.000 Other South America Social Security 0.019 0.013 SSI 0.001 0.001 Public assistance/welfare 0.001 0.006 continues Read the entire page →
From page 349... ... The samples for Hispanics overall and for 3+ generation Mexicans, Puerto Ricans, and black and white non-Hispanics are identified by the "subjective" Spanish-origin and race questions in the CPS. SOURCE: Pooled March CPS files, 1998�2002. Read the entire page →
From page 350... ... * 0.938 Fraction Receiving Food Stamps Mexico 0.114 0.081 0.127 0.105 Central America 0.085 Puerto Rico 0.228 Dominican Republic 0.473 0.019 0.053 Cuba 0.232 South America 0.114 Hispanics (self-identity) Read the entire page →
From page 351... ... ECONOMIC WELL-BEING 351 Generation* 2.0: 2.5: 3+: 1.0: U.S.-Born, U.S.-Born, U.S.-Born, Arrived Both Parents 1 Parent Both Parents as Adult Foreign-Born U.S.-Born U.S.-Born* Read the entire page →
From page 352... ... * 0.151 Other relatives of head 0.034 Unmarried partner of head 0.004 Other nonrelatives 0.010 Puerto Rico Head's children & grandchildren* Read the entire page →
From page 353... ... SOURCE: Pooled March CPS files, 1998�2002. Means are simple averages across households, using household weights. Read the entire page →
From page 354... ... * Mexico 605 477 El Salvador, Guatemala 46 32 Other Central America 92 71 Puerto Rico 418 278 Dominican Republic 123 113 Cuba 520 485 Colombia 78 75 Peru, Ecuador 42 40 Other South America 81 77 Hispanics (self-identity) Read the entire page →
From page 355... ... * Parents Foreign-Born 1 Parent U.S.-Born Parents U.S.-Born* Read the entire page →
From page 356... ... * Mexico 583 460 El Salvador, Guatemala 46 32 Other Central America 90 69 Puerto Rico 408 271 Dominican Republic 120 110 Cuba 498 463 Colombia 77 74 Peru, Ecuador 41 39 Other South America 80 76 Hispanics (self-identity) Read the entire page →
From page 357... ... They are included in the foreign-born total in column 1. SOURCE: Pooled March CPS files, 1998�2002. Read the entire page →
From page 358... ... * Mexico 3,755 El Salvador, Guatemala 378 Other Central America 327 Puerto Rico 623 Dominican Republic 303 Cuba 161 Colombia 196 Peru, Ecuador 193 Other South America 194 Hispanics (self-identity) Read the entire page →
From page 359... ... They are included in the foreign-born total in column 1. SOURCE: Pooled March CPS files, 1998�2002. Read the entire page →
From page 360... ... * Mexico 19,714 10,236 El Salvador, Guatemala 2,753 1,715 Other Central America 1,736 1,023 Puerto Rico 2,418 1,074 Dominican Republic 1,216 729 Cuba 2,221 1,465 Colombia 1,186 807 Peru, Ecuador 1,279 837 Other South America 1,100 692 Hispanics (self-identity) Read the entire page →
From page 361... ... They are included in the foreign-born total in column 1. SOURCE: Pooled March CPS files, 1998�2002. Read the entire page →

From page 291...

... Building on those earlier chapters, this chapter examines the outcome of these processes as reflected in total household income, not just earnings, which were examined in Chapter 7. Household income is a more comprehensive measure of economic well-being than individual earnings because it includes the earnings of all household members, plus unearned income from public benefits and other sources.

8 Economic Well-Being--Cordelia Reimers Pages 291-361

8 Economic Well-Being--Cordelia Reimers
Pages 291-361