Residential Segregation and Links to Minority Poverty: The Case of Latinos in the United States

This paper examines the relationship between residential segregation and rising Latino poverty and income inequality between 1970 and 1980. The research (1) ascertains the effects of increasing and sustained higher levels of Latino/Anglo segregation on poverty rates and income inequality, (2) assesses the effects of increasing and high levels of Latino/Anglo segregation on concentration in inner-city poverty areas, and (3) empirically tests the effects of changing levels of segregation, economic restructuring, and characteristics of the Latino population on increased Latino poverty and income inequality. Changes in Latino poverty rates and income inequality are examined for the 58 metropolitan areas with populations of 25,000 or more Latinos in 1980. Multivariate analysis reveals that residence in the more segregated metropolitan areas was a significant predictor of Latino poverty but was not significant in predicting Latino/Anglo income inequality. Changes in local labor market conditions had little effect on Latino poverty and income inequality, but changing Latino labor force characteristics—particularly increasing educational attainment, declining male labor force participation, and rising female labor force participation—were associated with decreases in poverty and reductions in income inequality. Residence in the Northeast was the most significant predictor of Latino poverty and income inequality. Furthermore, growth of the Latino population, increasing Latino suburbanization, and changes in the ethnic composition to include a growing proportion of non-Mexicans were also significant predictors of poverty status and income differentials