Residential location and the earnings of white and Hispanic men

Abstract

Much has been written on the impact of residential location on the earnings of males and whether the effect of residential location is different for African-American than white males. Unfortunately, very few researchers have devoted systematic attention to the impact of residential location on the earnings of Hispanics. Using data from the 1990 Current Population Survey, the authors estimate and compare the effect of residential location on the annual earnings of white and Hispanic males. Three principal findings emerge. First, the authors find that both central city and suburban Hispanics earn significantly less than white male residents of the suburbs. Secondly, the results reported here suggest that while central city residence lowers the earnings of both white and Hispanic men, the impact is more pronounced on the latter than the former. Third, this study finds no evidence that suburban earn more than central city Hispanics. This result stands in stark contrast to comparisons between suburban and central city whites, leading the authors to conclude that ‘race rather than space’ may play a more important role in contributing to the white-Hispanic male earnings differential.