This study addresses the following questions: Are Mexican immigrants closing the earnings gap with greater time in the United States, compared to U.S.-born Mexican Americans and non-Hispanic whites? What factors are most important in determining their earnings? How are earnings determinants different for women versus men, and those who came to the United States as children, versus those who came as adults and those born in the United States? Data is drawn from the 1990 PUMS U.S. Population Census for Arizona, California, Colorado, Illinois, Michigan, New Mexico, and Texas and includes only individuals ages 25–35. Determinants of education and hours of paid work are also analyzed as important means to higher incomes. With greater time in the United States, male immigrants achieve average earnings comparable to U.S.-born Mexican Americans, but not to non-Hispanic whites, controlling for human capital variables. With greater time in the United States, female immigrants approach the number of hours of paid work of U.S.-born women, but not the earnings received per hour. Gains in earnings associated with age, time in the United States, and English proficiency differ by gender, reflecting structural differences in the labor market. Immigrants who came to the United States as children show little difference in earnings, controlling for human capital, from U.S.-born Mexican Americans, while differing greatly from first generation immigrants who came as adults.
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