HSI Hispanic News
U.S.: Immigrants earning less, their children's progress up economic ladder slows
By Associated Press
Jul 27, 2007, 21:33

NEW YORK
The promise of the American dream continues to lure immigrants to U.S. shores, but the tide of opportunity is turning against the latest wave of new arrivals, according to a new report.

When compared to workers born in the United States, the latest immigrants are poorer today than at any time since World War II, according to data released Wednesday by The Pew Charitable Trusts.

In 2000, the average immigrant earned about 20 percent less than their American-born counterpart, the report stated. In 1940, a typical immigrant earned nearly 6 percent more.

Furthermore, while the children of immigrants today make more money than typical nonimmigrants, their climb up the economic ladder has slowed in recent decades, according to the report.

The second generation earned 6.3 percent more than American-born workers in 2000, compared to nearly 15 percent more in 1970 and almost 18 percent more in 1940.

Some of the difference in immigrants' earnings reflects the dramatic change in the economic and ethnic composition of U.S. immigrants, and it is anyone's guess how the economy will respond to that in the future, said John Morton, managing director of economic policy for The Pew Charitable Trusts.

"We are cautiously optimistic because there has been such a strong history of economic assimilation in America," he said.

Nearly a million immigrants enter the U.S. legally every year, up from about 320,000 in the 1960s, the report said, citing U.S. Census Bureau data from 2000 and 2005. At least 500,000 more arrive or remain in America illegally, according to the Pew Hispanic Center in Washington, D.C.

The report's findings apply to both legal and illegal immigrants because the census data analyzed for the report does not differentiate between the two groups.

Immigrants from Latin America, Asia and the Caribbean made up about half of all new arrivals in the 1960s, but now constitute nearly three-quarters of newcomers. Meanwhile, the number of European and Canadian immigrants has ebbed, the report found.

Remaining fairly constant in recent decades has been the educational background of new arrivals.

Almost half of immigrants from Latin America arrive with less than a high school diploma, while about half of those from Asia have a bachelor's degree or higher, the report stated.

A high school education does not go as far as it used to in the U.S., however, a challenge for immigrants and American-born workers alike, said Ron Haskins, the report's author.

"Precisely at the moment that you get higher educational requirements, you get an influx of a very large number of immigrants with low education," he said.

Damian Amancio, 30, moved to New York 13 years ago from the Dominican Republic, and is taking English language classes in hopes of eventually attending college and law school. His two-year-old son and 2-month-old daughter will be better off if he and his wife are educated and able to help them with homework, he said.

"I realized in this city I have a better opportunity for me and my family in the future," he said. Quoting a saying popular in the Dominican Republic, "To be American is a future," he said.

The income earned by children of immigrants is closely correlated with their parents' wages and education levels, as with American-born workers, the report found.

Country of origin also plays a role. Immigrants from industrialized nations tend to earn more than nonimmigrants, while arrivals from non-industrialized nations typically earn less, according to the report.

By the second generation, wages for both groups move toward average nonimmigrant incomes, particularly when education is factored in, the report said.

Hicham Skhoun, 26, came to New York from Morocco a year ago to learn English and further his studies in computer science. He's watched other immigrants toil at low-paying jobs for lack of an education, he said.

"The opportunities depend on the people, because there are people who look only for money," he said. "There are people who come here and work 12, 14 hours a day."

"I believe in the American dream," he said. "I believe."