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Economic Assimilation of Mexicans and Central Americans in the United States

Author

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  • Peri Giovanni

    (Department of Economics, UC Davis, One Shields Avenue, DavisCA95616, USA)

  • Rutledge Zachariah

    (WP Carey School of Business, Arizona State University, 7231 E. Sonoran Arroyo Mall Mesa, AZ85212, USA)

Abstract

Using United States Census data between 1970 and 2017, we analyze the economic assimilation of subsequent arrival cohorts of Mexicans and Central Americans by comparing their earnings and employment probability to those of natives with similar age and education. We find that, on average, these immigrants started with an earnings gap of 40–45% and eliminated half of it within 20 years of arrival. Recent cohorts that arrived after 1995 performed better than earlier cohorts in that they had smaller initial earnings gaps and faster convergence. Additionally, the most recent cohorts entered the United States without an employment rate disadvantage, and they surpassed natives within 10 years. We also find that Mexicans and Central Americans working in the construction sector and those living in nonenclave and urban areas had faster earnings convergence than the others.

Suggested Citation

  • Peri Giovanni & Rutledge Zachariah, 2022. "Economic Assimilation of Mexicans and Central Americans in the United States," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-26, January.
    • Handle: RePEc:vrs:izajdm:v:13:y:2022:i:1:p:26:n:1
    DOI: 10.2478/izajodm-2022-0003
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    References listed on IDEAS

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    More about this item

    Keywords

    economic assimilation; earnings; employment; Mexicans and Central Americans; cohort analysis;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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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