Puerto ricans in the u . s . Low - wage Labor Market : IntroductIon to the Issues , trends , and PolIcIes

in t r o d u c t io n [ 5 ] It Is estImated that over 40 mIllIon jobs In the unIted States—about one in three—are considered low wage (Boushey, Fremstad, Gragg, and Wall 2007). Research has shown that women, minorities, and non-college educated workers are overwhelmingly concentrated in this labor market sector (Applebaum, Berhardt, and Murnan 2006) and the probability of being a low-wage worker is ten times higher for minority populations even when wage impacts of changes in education, experience, occupation, and industry are taken into account (Anderson, Holzer and Lane 2005). Scholars have offered various explanations of the high levels of minority participation in this labor market, including labor market disadvantage theory, which argues that minorities are located in industries where structural economic factors, industrial restructuring, and the expansion of service jobs have led to a deterioration of working conditions and labor market outcomes for workers (Bauder 2001; Boyd 2000; Browne and Misha 2003; Corzine, Huff-Corzine and Creech 1988; Duncan and Hammond 1983). Such factors in conjunction with segmentation into low-wage jobs and discrimination have played a prominent role in perpetuating low-wage employment among minority population groups (Willis, Connelly and Degraff 2003). Increasing rates of participation in the low-wage labor market have become a growing area of concern for researchers and policy makers, especially in relation to labor market outcomes. Employment in low-wage jobs is linked to salaries below the poverty line and work arrangements that do not offer benefits such as health insurance, retirement savings accounts, paid sick days or family leave. In addition, workers in these job sectors experience longer periods of joblessness, higher rates of job turnover, reduced earnings, and reduced opportunity for formal training (Kaye and Nightingale 2000). Such characteristics lead low-wage workers to experience downward trends over time, including poor work conditions and declining worker mobility (Boushey, Fremstad, Gragg and Waller 2007), which, in the wake of the deepest economic recession since World War II, presents significant implications for their future economic opportunity. While research into the trends of participation in low-wage labor continue to grow, little is known about the specific profiles of these workers. For example, what are the key labor market indicators? What human capital characteristics do workers exhibit, and how do these vary across socio-economic backgrounds and population demographics? This paper seeks to contribute to this gap in the literature by examining the experience of Puerto Rican workers within low-wage labor markets in the U.S. and by describing recent trends in core labor market indicators. Using data from the American Community Survey (ACS) for 2006–2008, we undertake an analysis of the Puerto Rican population engaged in low-wage labor markets, the industries and occupations where they concentrate, and their human capital characteristics as compared to other population groups. Consideration of the Puerto Rican case is an important area of study. Research has shown that Puerto Ricans are concentrated in low-wage jobs and experience higher rates of unemployment and poverty than other Hispanic subgroups (Congressional Budget Office 2006; American Community Survey 2007). The unique migration patterns and residency status of Puerto Ricans in the mainland U.S. makes this ethnic-specific consideration important given that it can illuminate challenges that Puerto Ricans often face that other population groups—even within the Hispanic community—do not (Pereira, Frase, and Mollenkopf 2008).