Nativity, Gender, and Earnings Discrimination

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Abstract
This research note reports the results of a study that estimated the cost of labor market discrimination faced by Puerto Ricans in the United States. The study extended the work ofprevious efforts in that it measured the cost of discrimination by nativity for males and females. The object was to determine the extent to which this cost varied by place of birth: which groups are more affected, island-born or U.S. -born Puerto Ricans? Males or females? A human capital earnings function, augmented with demographic and structural variables, was estimated for each nativity/gender group among Puerto Ricans and the results were compared to White wage earners, using the 1980 5% PUMSfile. A regression decomposition procedure was employed to isolate the cost of discrimination. The results indicated the following: Puerto Rican females are equally affected by discrimination, whether born in Puerto Rico or in the United States; the cost of discrimination is less for males, and men born in Puerto Rico are more affected than U.S.-born Puerto Rican males. The discussion demonstrates that discriminatory processes impact Puerto Ricans differently: the island-born are more susceptible, and so are females.

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