Institute for the Study of Societal Issues

Few studies analyze the mechanisms that cause inequality in earnings, employment and occupational achievement between Latino and non-Latino populations. Compared to analyses of income for blacks, relatively little attention has been devoted to the study of income determination among Latino populations. Previous studies consider income inequalities from the perspective of human capital theory. This paper considers two dominant theoretical perspectives for explaining income inequality: the human capital model and the class/structural model. Then it will review related empirical studies of Latino populations. After critiquing the human capital and class/structural perspectives, this paper discusses policy initiatives emerging from these two competing models on the income inequality. Finally, it considers future research directions for the analysis of income determination and employment among latinos in the United States and concludes with some thoughts on the challenges we face in the post-Reagan era constructing policy alternatives and a movement that secures economic and political justice for all.

Note: This working paper was originally published in 1988 by the Institute for the Study of Social Change, now the Institute for the Study of Societal Issues.