Employment Instability and Earnings of Mexican-Origin Men

Abstract

This study examines the effect of employment instability on annual eamings of Mexican-origin men. Data are taken from the 1987 Current Population Survey annual demographic file. The author exploits the laborforce participation information providedfor the year prior to the survey. Respondents who experienced spells of unemployment or worked part-time involuntarily during the previous calendar year are categorized as unstably employed The author estimated linear regression models separatelyfor Mexican-origin and White workers. Results show that, net of human capital endowments and economic sector location, employment instability exerts a heavier penalty on Mexican-origin workers than on their White counterparts.