ERIC ED452306: Moving up the Economic Ladder: Latino Workers and the Nation's Future Prosperity. State of Hispanic America, 1999.

289 Pages·2000·2.9 MB·English

by  ERIC

DOCUMENT RESUME
UD 034 128
ED 452 306
Perez, Sonia M., Ed.
AUTHOR
Moving up the Economic Ladder: Latino Workers and the
TITLE
Nation's Future Prosperity. State of Hispanic America, 1999.
National Council of La Raza, Washington, DC.
INSTITUTION
Rockefeller Foundation, New York, NY.; Ford Foundation, New
SPONS AGENCY
York, NY.; John D. and Catherine T. MacArthur Foundation,
Chicago, IL.
ISBN-0-615-11386-9
ISBN
2000-00-00
PUB DATE
NOTE
288p.
Collected Works
General (020)
PUB TYPE
Books (010)
MF01/PC12 Plus Postage.
EDRS PRICE
Dropout Rate; Early Childhood Education; Economics;
DESCRIPTORS
Educational Attainment; Elementary Secondary Education;
*Employment Patterns; Fringe Benefits; *Hispanic Americans;
Human Capital; Immigrants; Job Search Methods; *Labor Force;
*Labor Market; Social Influences; Wages
Latinas; Latinos
IDENTIFIERS
ABSTRACT
This collection of papers looks at the employment status of
the U.S. Hispanic population, a significant and growing segment of the
nation's labor force. It analyzes characteristics of Latino workers,
including educational attainment by Hispanic subgroups, work experience and
"What Latino Workers
skills, and computer literacy. The eight papers are:
(1)
Bring to the Labor Market: How Human Capital Affects Employment Outcomes"
"What a Latino Worker Finds in the
(Marcelo Siles and Sonia M. Perez);
(2)
"Latino Unemployment: Current
U.S. Labor Market" (Rebecca Morales);
(3)
"Latino
Issues and Future Concerns" (Jorge Chapa and Craig Wacker);
(4)
Immigrants in the Labor Force: Trends and Labor Market Issues" (Guillermo J.
"Compensation for the Latino Worker" (Cordeila
Grenier and Peter Cattan);
(5)
"Benefit Coverage for Latino and Latina Workers" (Richard
W. Reimers);
(6)
"Closing the Social Mismatch: Lessons from
Santos and Patricia Seitz);
(7)
the Latino Experience" (Edwin Melendez and Luis M. Falcon); and (8)
"The
Impact of Latino Workers on the U.S. Economy: Implications for Effective
(Papers contain
Employment Policy" (Sonia M. Perez and Charles K. Kamasaki).
references.)
(SM)
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1
MOVING UP THE ECONOMIC LADDER:
LATINO WORKERS AND
THE NATION'S FUTURE PROSPERITY
State of Hispanic America 1999
EDITED BY
SONIA M. PEREZ
National Council of La Raza
Washington, DC
3
National Council of La Raza
The National Council of La Raza (NCLR), the largest constituency-based Hispanic orga-
nization in the nation, exists to improve opportunities for the more than 30 million
Americans of Hispanic descent. A nonprofit, tax-exempt organization incorporated in
Arizona in 1968, NCLR serves as an advocate for Hispanic Americans and as a nation-
al umbrella organization for more than 230 formal "affiliates," community-based orga-
nizations serving Hispanics in 37 states, Puerto Rico, and the District of Columbia.
NCLR seeks to create opportunities and address problems of discrimination and pover-
ty through four major types of initiatives:
Capacity-building assistance to support and strengthen Hispanic community-
based organizations.
Applied research, public policy analysis, and advocacy on behalf of the entire
Hispanic community, designed to influence public policies and programs so that
they equitably address Hispanic interests.
Public information efforts to provide accurate information and positive images of
Hispanics in the mainstream and Hispanic media.
Special catalytic efforts which use the NCLR structure and reputation to create
other entities or projects important to the Hispanic community, including interna-
tional projects consistent with NCLR's mission.
NCLR is headquartered in Washington, D.C. and has program offices in Chicago, Illinois;
Los Angeles, California; Phoenix, Arizona; San Antonio, Texas; and San Juan, Puerto Rico.
Copyright0 2000 by National Council of La Raza
1111 19th Street, N.W., Suite 1000, Washington, D.C. 20036
ISBN: 0-615-11386-9
Printed in the United States of America
All rights reserved. No part of this book may be reproduced in any form without written permission from NCLR.
4
Contents
Acknowledgments
Foreword
Introduction
iii
What Latino Workers Bring to the Labor Market: How Human
1.
Capital Affects Employment Outcomes
Marcelo Si les and Sonia M. Perez
1
What a Latino Worker Finds in the U.S. Labor Market
2.
Rebecca Morales
35
Latino Unemployment: Current Issues and Future Concerns
3.
Jorge Chapa and Craig Wacker
61
Latino Immigrants in the Labor Force: Trends and Labor Market Issues
4.
Guillermo J. Grenier and Peter Cattan
88
Compensation for the Latino Worker
5.
Cordelia W. Reimers
125
Benefit Coverage for Latino and Latina Workers
6.
Richard Santos and Patricia Seitz
162
Closing the Social Mismatch: Lessons from the Latino Experience
7.
Edwin Melendez and Luis M. Falcon
186
The Impact of Latino Workers on the U.S. Economy:
8.
Implications for Effective Employment Policy
Sonia M. Perez and Charles K. Kamasaki
210
References
233
Index
253
NCLR Academic Advisory Committee Members
268
About the Editor and Contributors
269
Moving Up The Economic Ladder
Acknowledgments
is always the product
even an edited book with many "official" contributors
A book
of many more people than those included in the formal credits. I am especially pleased
to acknowledge below the colleagues and supporters who deserve special mention.
This book was the brainchild of Raul Yzaguirre, President of the National Council of La
Raza (NCLR). He shared his vision of ways in which researchers, advocates, and aca-
demics could collaborate to produce policy-relevant and educational documents with
before us, as well as
a Latino focus. I appreciate the opportunity and challenge he put
his insight, historical perspective, and commitment to the Latino community.
I would like to thank members of the NCLR Hispanic Employment Policy Project
Academic Advisory Committee for their collaboration and support (see list included at
the end of this volume). Over a two-year period, Advisory Committee members met to
share their knowledge and ideas about how best to contribute to the field of employ-
In addition to their time and brainpower, both NCLR and I
ment policy research.
appreciate their interest in building bridges between research and policy. Similarly, I
want to thank the authors of the chapters included here for their patience, dedication,
It has been a long process, but I have gained much from the expe-
and contributions.
rience of working with each of them and am grateful for their willingness to collabo-
rate on such an effort. As a group, they have all demonstrated their interest and gen-
uine concern for areas in which policy can help Latino workers succeed. The guidance
they provided not only produced NCLR's first book, but also shows that research has
for Latinos.
an important role to play in shaping policy and creating opportunities
I
especially thank Cordelia Reimers for her interest, disposition, and good will, and for
sharing her knowledge with us on related projects.
I would also like to acknowledge the significant support received from many colleagues
at NCLR. Jonathan Njus, former NCLR Employment Policy Analyst, was extensively
involved in the book's conception, development, and coordination. He served as able
coordinator and co-editor before leaving NCLR to attend the University of Chicago
The authors have let me know how much they
Graduate School of Public Policy.
I especially
appreciate his work on and contributions to early versions of the book.
thank him for his enthusiasm, continued interest in, and commitment to the comple-
and to this field.
tion of the book
6
Moving Up The Economic Ladder
Other colleagues at NCLR also provided important assistance. Eric Rodriguez, Senior
Policy Analyst, reviewed two of the book's chapters and provided valuable comments
that strengthened their clarity. Joel Najar, Immigration Policy Analyst, provided useful
suggestions for the chapter on immigrant workers and pointed me to helpful references
for background information. Lisa Navarrete, Deputy Vice President for Public
Information, provided a fresh perspective to help me think about the book's message.
Cecilia Munoz, Vice President, helped in reviewing and clarifying sections related to
immigration. Lorena Mendez, Administrative Assistant, provided a range of support to
coordinate the numerous phases of the book's publication
I thank her for her help and
computer assistance.
Computer thanks also go to Allen Kadis, Management
Information Systems Director, who helped us convert and format tables and charts, and
rescue missing information. I thank Cristina Bryan, Editor, for providing expert edito-
rial and proofreading oversight, preparing the book's index, and offering encourage-
ment and comprehension along the way. Yael Flusberg, NCLR Consultant, also pro-
vided editorial assistance during the early versions of the book.
I am grateful for the
teamwork of Rosemary Aguilar Francis, Director of the Graphics & Design Unit, Ofelia
Arden-Jones, Design Specialist, and Carlos Acosta, Design Consultant, who were
responsible for the book's design and layout, and who were helpful and patient
throughout the publishing process.
Others outside of NCLR also made the completion of this book possible.
I thank my
parents, Luz and Pedro, who worked harder than I will ever have to and who serve as
a constant reminder of why I care about these issues. My husband and cornpariero,
Luis Duany, knows as much about this book as I do. He untiringly listened to all the
developments along the way, believed in its value, and with humor and love provided
encouragement and the final push to help me get to the finish line. Two friends also
lent support. Cynthia Ferguson, my seventh sister and mejor amigo, often asked me
how the book was going and patiently listened to details when I responded, even
though this is not her field. And I thank Felix Matos Rodriguez for sending encour-
agement from a distance and for understanding the value of policy-oriented research.
The production of this book was made possible by funding from the Rockefeller
Foundation, through its support of NCLR's Hispanic Employment Policy Project; from
the Ford Foundation, through its support of NCLR's Economic Mobility Project and its
general support to the organization; and from the John D. and Catherine T. MacArthur
Foundation for its support of NCLR's Policy Analysis Center. The content of this book
Moving Up The Economic Ladder
is the sole responsibility of NCLR, the editor, and the books contributors, and does not
necessarily reflect the opinions of its funding sources.
Sonia M. Perez
San Juan, Puerto Rico
May 2000
8
Foreword
From Amazon.com CEO Jeff Bezos, pioneer of e-commerce, to the Latina health care
worker in Chicago, to the street vendor selling oranges by a Los Angeles freeway, to the
latest "hot" Hispanic entertainment act, Latinos have never been more visible in the
workforce. And this is just the beginning; according to The Economist magazine, 40% of
net new job entrants in the U.S. labor force in the late 1990s were Latino. Moreover, few
issues dominated policy-making in recent years as the drive to put people to work.
Components of that effort ranged from the severe
dramatically thinning welfare rolls
to the more benign, such as a major revision of the nation's job training system. In addi-
tion to massive demographic changes over the past two decades, the data confirm that
are working harder than ever before. Furthermore,
especially Hispanics
Americans
the remarkable performance of the U.S. economy in the 1990s has resulted in the longest
period of sustained economic growth in history.
Normally, one might think that the combination of unprecedented visibility, rapid
growth, substantial policy attention, a powerful attachment to the labor force, and a "ris-
ing economic tide" would translate into significant improvements in the economic status
of all workers, including Latinos. Unfortunately, while the vast majority of Hispanics are
successfully moving up the economic ladder, a disturbingly large number are struggling.
Clearly, many of the "conventional" explanations for economic success
or the lack
thereof
do not apply to Hispanic workers. For instance, the simplistic notion that any-
one can get ahead through hard work alone is very much alive and well.
It has also
become fashionable in some quarters to assert that the nation's immigration policies are
responsible for the lack of economic progress in the Latino community. These propo-
nents suggest that the number of low-skilled immigrants entering the U.S., many of them
Latino, distort the U.S. Hispanic economic profile. If immigration were reduced, they
contend, the problem would be alleviated over time. When questions are raised about
the impact of discrimination on economic mobility, many believe the issue is exaggerat-
ed and/or that little can be done. If one asks about the effect of education and job train-
ing programs, many suggest that these programs "don't work," or that they are principal-
ly local responsibilities. Many of these observers espouse the notion that for the poor, in
general, and for ethnic minorities in particular, all we need is a healthy growing econo-
my that "lifts all boats."
Moving Up The Economic Ladder
Although many of the theories and arguments noted above have some salience for the
Hispanic community, overall, they do not explain the stagnant labor force position of
many Latinos. For example, as the chapters in this book document, Hispanics display a
strong work ethic, arguably more powerful than that of any other identifiable ethnic
group. In addition, the book's findings suggest that one of the principal problems among
Hispanics is not unemployment but underemployment; the addition of, or better access
to, more low-wage jobs alone will not alleviate poverty or create wealth in our commu-
nity. While it is true that all workers with high levels of education, including Hispanics,
have experienced increases in wages over the past decade, it is also true that Latino wages
are lower than those of White or Black non-Hispanics. Moreover, the wage gap between
Hispanics and Whites has increased over this period. Additional disparities are seen
when examining important benefits, like health care and pension coverage
Latino work-
ers are less likely than other American workers to obtain these in their places of work. As
for the notion that unemployment and poverty are linked to immigration, this report sub-
stantiates the mainstream view among economists that the effects of immigration have
tended to be exaggerated in media and policy debates.
For much of my professional life, I have been placed in the position of trying to change
In this sense, this book follows in a long line of
misperceptions of my community.
National Council of La Raza (NCLR) analyses that seek to inform policy-makers and the
public that issues that affect Latinos too frequently are a "square peg" that cannot be
made to fit the "round hole" of traditional policy paradigms.
But in another sense, this book constitutes a new, exciting venture for NCLR. It repre-
sents an intensive collaboration between NCLR and a group of distinguished academi-
cians in an attempt to bridge the gap that too frequently divides research and policy for-
mation. In this connection, it provides a major contribution to the field, if for no other
reason than to demonstrate that many of the labor force problems experienced by
Hispanics are amenable to changes in public policy. It shows that all Americans, and not
just Latinos, have a vital self-interest in improving the labor force status of what will soon
be the nation's largest ethnic minority. At the opening of a new century, and at a time of
unprecedented economic prosperity and potential record federal and state budget sur-
pluses, I believe that the research presented here underscores the importance of making
a series of strategic investments in the nation's growing Hispanic workforce. If not now,
when?
Raul Yzaguirre
Washington, D.C.
May 2000