1. What are the Economic Impacts on Communities as They Change from Black to Latino? Terra Bennett Sandra Kim Michael Park Economics 116 Professor Conrad 5/02/05

2. Current Context Los Angeles Mayor Elections Highlights the tension between the Latino and Black communities Addresses the economic situation of the city and the perceived different interests of the two communities

3. Economic & Sociological Theories Theories Living Arrangements of Latino Immigrants Job Searching Methods Ethnic Economy (food service and retail trade) Predicted Effects Higher rent Higher employment rate Greater concentration in low-wage jobs Higher rate of entrepreneurship

4. Economic Changes Total population in both cities is increased, driven primarily by the growing Latino population Inglewood experienced more dramatic change in industries of employment than Compton Median Household Income experienced dramatic changes over the past 30 years –Between 1990 and 2000, both communities’ medians lost most of the gain made between 1980 and 1990

5. Context Increased Latino Immigration Economic Restructuring in Los Angeles

6. Factors for Increased Latino Immigration Amendment to Immigration and Nationality Act in 1965 Globalization: Latin America experienced great political and economic turmoil (1980 – 1990) Many immigrants and refugees arrived as uneducated and low skill workers

7. Economic Restructuring in LA 75,000 Manufacturing jobs lost (1970) Decreased government funding for anti-poverty and jobs programs in urban areas (1970) Decreased funding social services (1970-2000) Increased the perception and reality of competition among minority groups as low-wage earners Business owners in urban areas left due to increasing fear of riots and urban unrest

8. Economic & Sociological Theories Living Arrangements of Latino Immigrants Job Searching Methods Ethnic Economy

9. Living Arrangements of Latino Immigrants Tendency for extended family to live together Cultural hypothesis: Reflection of traditional family patterns brought from the home country Economic resource hypothesis: Individuals with the fewest economic resources will be the most likely to live in extended arrangements Life-course hypothesis: Living arrangements reflect the varying constraints and needs of life-course events and stages Predicted effect on the community: Immigrants initially move into undesired areas with lower rents, such predominantly lower-income black communities Able to pay higher rents due to the multiple people contributing to it Overtime, this increases housing prices

10. Job Searching Methods Latino immigrants and their immigrant social network Tend to use friends, family, neighbors, and inside referrers to acquire jobs and develop highly localized and densely connected employment networks Reduce information costs in the job search More willing to accept any job they can get quickly due to lack of English, education, and papers Black residents More likely to rely on third-parties outside of the local neighborhood and immediate ethnic niches. More selective in their job searches and won’t accept jobs with low-wages and bad working conditions because they are citizens, know their rights, and have access to welfare and unemployment benefits Predicted effect on the community Predominant jobs are increasingly characterized by lower wages and worse working conditions Higher employment rate

11. Ethnic Economy Primarily in the food service and retail trade –Benefits Easier to get a job in ethnic stores Protect from discrimination –Costs Not linked to social mobility Longer commute times with lower wages Relegate individuals to menial jobs and enforce a linguistic isolation that obstructs advancement Predicted effect on the community Higher rates of self-employment and of business ownership

12. Economic Change Population Change Types of Housing Units Medium Household Gross Rent Medium Household Income Poverty Rate Employment Rate Labor Force Participation Rate Unemployment Employment Residents by Industry

13. Population by Race/Ethnicity

14. Housing Units by Occupancy Status

15. Median Household Gross Rent in 1999 dollars

16. Median Household Income in 1999 Dollars

17. Poverty Rate

18. Employment & Labor Force Participation Rate

19. Unemployment Rate

20. Employed Residents by Industry

21. Discussion Predicted Results Large increase in available housing Increase in average rent Greater concentration in low-wage jobs Increase in employment rate Increase in self-employment rate and business ownership Actual Results Little increase in available housing Rent increased by $100+ Poverty increased by 192% in Inglewood and 48% in Compton Employment decreased by 0.7% in Inglewood and increased by 12% in Compton Median household income decreased by 25% in Inglewood and by 17% in Compton Unknown given available data

22. Further Research Evidence on the topic is inconclusive Race-Specific data needs augmentation for this type of research Qualitative research is necessary, including site visits and interviews Though most immigration occurred between 1980 and 1990, the time period, 1990-2000, witnessed severe economic fluctuations and warrants further study