The Return-on-Education Gap between Hispanics and Non-Hispanic Whites

• In Event: The Unsettling Impact of Migration on Education

Abstract

Since there is a well documented gap in educational achievement by race and ethnicity in the U.S., and immigrants who enter the country often have difficulties joining the labor market at the levels of skill their education would allow in their countries of origin, it is important to estimate the influence of ethnicity and immigrant status on the gains from schooling these groups experience relative to non-Hispanic whites. At the individual level, work experience, language skills, and social networks play an important role in the likelihood of obtaining wages commensurate to their schooling. While at the state level we expect that unemployment rates, proportion of foreign-born, educational policies, and ethnic composition may have an impact on the return on education for immigrant minorities. The purpose of this paper is to shed light on those potential differences by analyzing the return on education for non-Hispanic whites in comparison to that for Mexican immigrants, Mexican-origin natives, Puerto Ricans, Dominicans, Cubans, and native and immigrant Central Americans. We use data from the American Community Survey 2008-2012 to estimate the differences in the return on education by comparing income relative to educational attainment across ethnic and immigrant groups. In addition to identifying the ethnic differentials in the return on education, we will analyze differences in household structure and occupations for the various groups. We also account for labor market conditions and immigrant composition at the state level. By recognizing the heterogeneity within the Hispanic and immigrant groups, this research contributes to the scholarship on the return to education for different race/ethnic groups and it helps us understand socioeconomic mobility trajectories for immigrants.

Authors

• Gabriela Sanchez-Soto, The University of Texas at San Antonio

• Joachim Singelmann, Department of Demography

• Andrea Bautista, UTSA