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Chapter 27. Disparities in Economic Status among Native-Born and Foreign-Born Populations in Paterson, New Jersey
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C Ch ha ap pt te er r 2 27 7 Disparities in Economic Status among Native-Born and Foreign-Born Populations in Paterson, New Jersey THOMAS Y. OWUSU INTRODUCTION Immigration continues to contribute significantly to the growth of the U.S. population. In the last two decades , about one million immigrants have been admitted every year. Although the number of immigrants has remained high, the source regions have changed. Since the 1960s, the numbers and share of immigrants coming from Latin America, Asia, Eastern Europe, and Africa have increased, while the proportion of immigrants coming from traditional sources in Europe has declined. Like earlier groups, however, recent immigrants are redefining the economic, demographic, social, and cultural character of American cities, which are often their preferred destinations (Cross, 1998; Castles and Miller, 1993). Given the continuing high levels of immigration and the impact of immigrants on American society, the level of academic attention given to the issue is high (Camarato, 2001; Kraly and Miyares, 2001; 1999; Borjas; Portes and Rumbaut, 1990). The economic impacts of American immigration policy, and the economic difficulties experienced byimmigrants in particular, have been the subject of considerable research effort and public debate. Some studies have concluded that immigration has become a major factor in the size and growth of poverty. According to Camarato (2001), despite a strong economy over much of the last two decades, the poverty rate for persons in immigrant-headed households not only has remained high, but actually has increased significantly. While the above assertion maybe generally valid, it is of course recognized that immigrants in the U.S. are not a homogeneous group; they differ in terms of their demographic, economic, and social attributes, including educational background and skills, period of immigration, age, race, language proficiency, and so forth. Thus it is expected that their economic experiences will also differ considerably . It is known, for example, that poverty rates among immigrants in the U.S. varies significantly by region of origin. In general, immigrants from Latin America and the Caribbean have the highest povertyrates, while those from Europe and Asia tend to have the lowest rates (Camarato, 2001). These findings are consistent with those from similar studies in Canada (Lo et al., 2001). Furthermore, relatively little research has focused on the experiences of immigrants groups in different urban settings. The paucity of research in this area is striking, given that the economic experiences of immigrants depends in part on the local labor market. Indeed income disparities may reflect unequal opportunities available to immigrants and native-born Americans in different urban markets. Research also shows that immigrants who work in urban areas with large immigrant concentrations can benefit from the presence of enclave businesses, although the precise effects of the immigrant enclave economy on the earning capacity of immigrants remains contentious. Urban locations also differ in unemployment rates, which adversely affect opportunities of job seekers, especially recent immigrants. The preceding observations suggest that generalizations about the economic experiences of immigrants may be misleading . What is required, therefore, are case studies that seek to analyze variations in the economic conditions of immigrant groups in different cities. These observations provide a rationale for this study. This chapter will examine differences in the economic status (measured by income) of native-born Americans and the foreign-born in Paterson, New 354 Thomas Y. Owusu Jersey, and then explain the disparity in terms of a variety of human capital and personal factors including education, occupation, period of immigration, race, and English language proficiency. The City of Paterson is located within the New York-New Jersey Metropolitan Area (see Figure 27.1), and it is the third largest city in New Jersey, with a population of approximately 170,000. The cityprovides a suitable urban setting for exploring various propositions in the literature regarding the economic experiences of immigrants in U.S. cities. First, immigration has not only contributed to the growth of the city’s population, but it has shaped its economic and social character. Second, in accordance with a broader national trend, the origins of immigrants coming to Paterson has changed significantly in the past three decades. The majorityof immigrants coming to Paterson since the 1970s have come from Latin America, Asia, and Eastern and Central Europe. Third, the poverty rate in Paterson has varied considerably since 1970, but has remained consistently higher than the rate for most cities in Passaic County and New Jersey as a whole. The development and growth of Paterson and the dynamics...