Abstract

In studying labor market inequality of Asian Americans, the role of region and migration remain key factors that have not been much taken into account in the prior research. Using the 2003 National Survey of College Graduates (NSCG), this study examines whether native-born and 1.5-generation Asian Americans are more likely than whites to reside in the West. We also investigate whether native-born and 1.5-generation Asian Americans have higher earnings than whites when broken down by West versus non-West. In addition to an OLS regression model, a switching regression model is used in order to account the possibility of sample selectivity between wages and region among men who are observed to reside in the West and in the non-West. This study can therefore ask, net of demographic and socioeconomic factors and selectivity, if there is no differential in earnings between Asian Americans and whites in the West, as well as in the non-West. The results of this study indicate that Asian Americans are more likely than whites to currently reside in the West, regardless of age category and nativity. This study also finds that Asian American men do not face a substantial disadvantage in the US labor market, net of demographic and class factors. Finally, switching regression models demonstrate that both younger native-born and younger 1.5-generation Asian Americans in the West and 1.5-generation Asian Americans in the non-West have significantly higher average earnings than whites, after further controlling for selectivity. This indicates that the estimated earnings differentials for younger Asian Americans and whites are obscured when using OLS, which does not account for selectivity. In regard to selectivity, there is a positive selection into living in the West, while the selection is negative living into the non-West.

Highlights

  • One might hypothesize that 1.5-generation Asian Americans are less likely than whites to live in the West, because their parents are recent immigrants who are more likely to live in other regions with lower cost of living

  • Findings from the probit model indicate that 1.5-generation Asian Americans are more likely than whites to reside in the West

  • Using both OLS and switching regression models, findings of this study indicate that net of age, education, marital status, disability, college major, and college type, there is no significant differential in earnings between college-educated Asian Americans in the West and their comparable white counterparts

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Summary

Americans as a Minority in the Labor Market

A number of studies show that Asian Americans faced direct and overt racial discrimination in the labor market before World War II (e.g., Bonacich, 1972, 1973; Bonacich & Modell, 1980; Boswell, 1986; Chin, 2005; Ichihashi, 1932; Ichioka, 1988; Jiobu, 1988; Kitano, 1976; Kitano & Daniels, 2001; Levine & Montero, 1973; Lieberson, 1980; Lyman, 1974; Makabe, 1981; McLemore, 1994; Okihiro, 1994). Prior research (e.g., Barringer, Gardner, & Levin, 1993; Sakamoto & Xie, 2006; Xie & Goyette, 2004) demonstrates that Asian Americans as a whole (especially among the native-born) tend to have higher mean values on most indicators of socioeconomic status (e.g., education, incomes, hourly wages, and employment in professional and technical occupations), and that they are not disadvantaged in labor market stratification processes (Fang, 1996; Farley & Alba, 2002; Iceland, 1999; Ko & Clogg, 1989; Montero, 1980; Sakamoto & Xie, 2006; Xie & Goyette, 2004; Zeng & Xie, 2004) This general pattern in part derives from having parents who tend to have higher levels of educational attainment themselves (Sakamoto & Xie, 2006). It is argued that the racial differentials are mostly explained by and depend upon class characteristics and market resources

The Role of Region in Asian American Labor Market
Data and Methods
Switching Regression Models
Descriptive Statistics
Business Finance
Current Region
Conclusion
Full Text
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