The economic disparity between Hispanic and non-Hispanic White households: An analysis of middle-class achievement

Abstract

We utilize data from the 2010–2019 Consumer Expenditure Surveys to examine middle-class achievement of English-speaking and non-English-speaking Hispanic households compared to non-Hispanic white households in the United States. Using an innovative expenditure-based middle-class measure, our findings show that non-English-speaking Hispanics lag English-speaking Hispanics, and English-speaking Hispanics lag whites, in middle-class attainment. We also identify significant structural differences among the three groups, particularly in how education, marriage, and employment affect middle-class achievement. Non-English-speaking Hispanics have a lower rate of return on education compared to both whites and English-speaking Hispanics. Non-English-speaking Hispanics experience lower marriage and employment premiums compared to their English-speaking Hispanic counterparts, and English-speaking Hispanics experience lower marriage and employment premiums compared to whites. This study contributes to the literature by introducing the innovative expenditure-based middle-class measure and emphasizing the importance of considering within-group differences among Hispanics to reduce the Hispanic-white economic disparity.