An Analysis of Earnings Patterns for Chinese, Japanese, and Non-Hispanic White Males in the United States

Abstract

This article examines simultaneously three theoretical explanations—assimilation, human capital, and discrimination—on the earnings attainment process of Chines, Japanese, and non-Hispanic white males in the United States. The analyses are conducted by level of education, by state of residence, and by nativety. We first apply the earnings determination model separately for each of the racial/ethnic groups to examine if earnings patterns are similarly explaned by assimilation and human capital measures. We then combine the three groups to see if ethnic differences remain after the effects of individual characteristics are controlled for. Our findings, based on results from separate regression analyses, show few intergroup differences, except for foreign-born Japanese. Regardless of race, earnings are generally improved by assimilation, human capital, and favorable structural factors, as expected by both the assimilation and the human capital theories. However, results from some of our paired-group comparisons do not indicate a parity in earnings between the two Asian groups and non-Hispanic white group. In particular, U.S. -born Chinese and Japanese in California, with or without college degrees, U.S.- born Japanese with college degrees in Hawaii, and foreign-born Chinese, regardless of college education or state of residence, experience significant earnings disadvantages relative to their white counterparts with identical credentials. The finding that U.S. -born Chinese and Japanese lag behind their equally qualified white counterparts in earnings attainment suggests an existing effect of racial discrimination.