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Journal of Political Economy Vol. 105 No. 6 1997

Why Do Mexican Americans Earn Low Wages?

Stephen J. Trejo

University of California, Santa Barbara

Abstract

Using Current Population Survey data from November 1979 and 1989, I find that Mexican Americans earn low wages primarily because they possess less human capital than other workers, not because they receive smaller labor market rewards for their skills. Among third‐and higher‐generation men in 1989, Mexicans averaged 21 percent lower wages than non‐Hispanic whites, which is roughly similar to the wage deficit for blacks. For Mexicans, more than three‐quarters of the wage gap is attributable to their relative youth, English language deficiencies, and especially their lower educational attainment. By contrast, these variables explain less than a third of the black‐white wage gap.

DOI
10.1086/516391
Volume
105
Issue
6
Pages
1235-1268
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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