Effects of Relative Group Size, Increase, and Segregation on the Earnings of Blacks and Asians

Abstract

Abstract This study examines the effects of relative group size, group increase and segregation on the earnings of blacks and Asians, using data from the 1980 census. Relative group size and segregation influence the earnings of blacks and Asians, net of human capital, but have different effects on workers from the two groups. The earnings of black workers increase as the relative group size (percent black) expands. But this positive effect diminishes and then becomes negative. Segregation is not significant. The earnings of Asian workers also increase as relative group size (percent Asian) expands. Yet, in contrast to blacks, there is no turning point in the relationship, although the positive effect declines at high levels of percent Asian. Segregation has a similar effect — positive with a declining slope — on the earnings of Asians. Disparities in the effects of group size and segregation suggest that Asians may have greater access to demographic and ecological “recourses” than do blacks.