Household composition, employment patterns and economic well-being: Puerto Ricans in the United States and Puerto Rico, 1970-1980

This study examines the demographic and socioeconomic characteristics of Puerto Rican householders in the United States and Puerto Rico, from 1970 to 1980. Particular attention is given to the impact of household composition, educational attainment and employment characteristics on household income.

Analysis of Census data shows an increase in marital disruption, and in the proportion of female headed and one person households. Mainland households were, however, more likely to exhibit these characteristics relative to those in Puerto Rico. The economic conditions of United States householders deteriorated, during the 1970's, as evidenced by declining labor force participation rates and income levels, and increasing poverty. Householders on the Island were also experiencing severe economic difficulties. Puerto Rico is characterized by low labor force participation, high unemployment, and widespread poverty. Results from regression standardization show that although the compositional characteristics of householders in Puerto Rico were "more favorable" to higher incomes, the rates component accounted for 62% of the differences in household income between Island and mainland Puerto Ricans in 1980.

Significant demographic and socioeconomic differences between Puerto Rican householders in New York and other areas of the United States were also documented. New York Puerto Ricans had higher levels of marital disruption, and were more likely to live in female headed and one person households. Further, they had lower labor force participation and higher unemployment rates, and were more likely to report income from public assistance. As a result, average household income was significantly lower for New York Puerto Ricans relative to those not in New York. In 1980, the rates of return were as important as compositional differences in accounting for the household income differentials between Puerto Ricans in these two areas of the mainland.

It is suggested that the deteriorating economic conditions of Puerto Ricans is a result of joblessness and low-skilled, low-wage jobs among those employed. Industrial restructuring, low levels of education, and the dramatic growth of female headed households have also had a significant impact on their economic well-being. Further, I argue that the problems of Puerto Ricans have been exacerbated by racial and ethnic discrimination.