Geography, Coethnic Concentration, and Earnings Disadvantage of Asian American Men

Asian Americans are considered a model minority due to their high socioeconomic attainments. On average, they earn more than native-born Whites, but their tendency to live in relatively high-cost areas raises the question of how geographic distribution relates to Asian American earnings advantages. Given that less-educated Asian Americans lack market negotiating power, are vulnerable to local coethnic competition and exploitation, and thus do not fit the model minority stereotype, particular attention is paid to their labor market performances. The analyses using the 2010–2019 American Community Survey uncover that, except for those with advanced degrees, Asian Americans experience a relative earnings disadvantage compared to Whites after controlling for detailed residential areas. The disadvantage for less-educated Asian Americans is exacerbated in local labor markets with higher coethnic concentration.