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Why are the wages of the Mexican immigrants and their descendants so low in the United States?

Author

Listed:
  • Pedro P. Orraca-Romano

    (University of Sussex)

  • Erika García-Meneses

    (Universidad Autónoma de Baja California)

Abstract

This paper studies the role of occupational segregation in explaining the low wages among first, second and third generation Mexican immigrants in the United States. Mexican-Americans earn lower wages than African-Americans mainly because they possess less human capital. With respect to Americans of European descent, their lower wages are also a product of their smaller rewards for skills and under representation at the top of the occupational structure. Occupational segre- gation constitutes an important part of the wage gap between natives and Mexican-born immigrants. For subsequent generations, the contribution of occupational segregation to the wage gap varies significantly between groups and according to the decomposition used.

Suggested Citation

  • Pedro P. Orraca-Romano & Erika García-Meneses, 2016. "Why are the wages of the Mexican immigrants and their descendants so low in the United States?," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(2), pages 305-337.
    • Handle: RePEc:emx:esteco:v:31:y:2016:i:1:p:305-337
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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