How Foreign- and U.S.-Born Latinos Fare During Recessions and Recoveries

27 Pages Posted: 14 May 2021

See all articles by Pia M. Orrenius

Pia M. Orrenius

Federal Reserve Banks - Federal Reserve Bank of Dallas

Madeline Zavodny

University of North Florida; IZA Institute of Labor Economics; Agnes Scott College

Date Written: April, 2021

Abstract

Latinos make up the nation’s largest ethnic minority group. The majority of Latinos are U.S. born, making the progress and well-being of Latinos no longer just a question of immigrant assimilation but also of the effectiveness of U.S. educational institutions and labor markets in equipping young Latinos to move out of the working class and into the middle class. One significant headwind to progress among Latinos is recessions. Economic outcomes of Latinos are far more sensitive to the business cycle than are outcomes for non-Hispanic whites. Latinos also have higher poverty rates than whites, although the gap had been falling prior to the pandemic. Deep holes in the pandemic safety net further imperiled Latino progress in 2020 and almost surely will in 2021 as well. Policies that would help working-class and poor Latinos include immigration reform and education reform and broader access to affordable health care.

JEL Classification: J11, J15, E24

Suggested Citation

Orrenius, Pia M. and Zavodny, Madeline, How Foreign- and U.S.-Born Latinos Fare During Recessions and Recoveries (April, 2021). FRB of Dallas Working Paper No. 2104, Available at SSRN: https://ssrn.com/abstract=3843799 or http://dx.doi.org/10.24149/wp2104

Pia M. Orrenius (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

PO Box 655906
Dallas, TX 75265-5906
United States
214-922-5747 (Phone)
214-922-5194 (Fax)

Madeline Zavodny

University of North Florida ( email )

4567 St. Johns Bluff Road, South
Jacksonville, FL 32224-2645
United States

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Agnes Scott College ( email )

United States

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