Retirement Saving Participation Among U.S.-Born Latinos

• In Event: Open Refereed Roundtables
  In Refereed Roundtable (90 minute): Table 18: Stratification and Economic Inequality

Abstract

Research consistently documents low pension participation among Latino immigrants, yet far less is known about retirement saving behavior among U.S.-born Latinos. Drawing on classical assimilation theory, this study examines whether nativity shapes pension participation through differential incorporation into labor market institutions and financial systems. Using panel data from the Survey of Income and Program Participation (SIPP), I estimate multivariate logistic regression models predicting participation in defined contribution retirement plans (e.g., 401(k), 403(b)) among U.S.-born Latinos, foreign-born Latinos, and non-Hispanic Whites. Results indicate that foreign-born Latinos remain significantly less likely than non-Hispanic Whites to participate in employer-sponsored pension plans, even after accounting for demographic characteristics, family obligations, collectivist orientations, labor supply, and years since immigration. In contrast, U.S.-born Latinos do not differ significantly from non-Hispanic Whites in pension participation once structural and socioeconomic factors are controlled. These findings suggest that disparities in retirement savings are better explained by institutional access and immigrant incorporation processes than by cultural deficit narratives. The results challenge assumptions that Latinos—particularly Mexicans—are inherently passive in financial decision-making and underscore the importance of nativity in shaping wealth accumulation trajectories.

Author

• Sung David Chun, Mercy College of Ohio