Self-Employed Hispanics and Hispanic Wage Earners: Differences in Earnings

Abstract

The influence of employment sector on the income of Hispanics is examined using data from the 1990 U.S. Decennial Census. Human capital theory is augmented with measures of acculturation, and income equations are estimated separately for self-employed Hispanics and Hispanic wage earners. The results suggest that self-employment offers economic benefits. The importance of acculturation varies by employment sector. Decomposition of the differences in income between self-employed Hispanics and Hispanic wage earners indicates that these income differences are due more to differences in worker characteristics between the two employment sectors than to differences in rates of return to these characteristics.