Income and Race Analysis: Immigrants Outperform Everyone?

Abstract

This study investigates the multifaceted dynamic of interracial income inequities in the United States. I first utilize a general regression model and interact with the generational group, education, and age for each race at five distinct age groups. Additionally, I use a quantile regression model to pinpoint how one’s generation group affects each race at the 15th, 25th, 50th, 75th, and 90th income percentiles. The results reveal that immigrants (or as referred to in this study, first-generation) across the income spectrum generally earn more than their second-generation counterparts. Specifically, compared to third-generation Americans, immigrants earn approximately $2,819 more at the 15th percentile, $3,493 more at the 25th percentile, $4,380 more at the 50th percentile, $8,906 more at the 75th percentile, and $11,095 more at the 90th percentile. Notably, at the 75th percentile, immigrants earn an average of $6,563 more than second-generation Americans annually.