Earnings differences among the mexican-origin population in the united states: Nativity and citizenship explanations

We use data from the June 1986 Current Population Survey to investigate nativity and citizenship differences in earnings within the Mexican-origin population in the United States. There is no evidence of any “costs” of nativity or citizenship status. Rather, the existing variation appears to be more than explained by the distribution of earnings-related endowments. In fact, there is evidence that immigrants are better rewarded for their lower endowments. A possible explanation is that the Mexican-origin population is seen as homogeneous by employers, who therefore compensate individuals similarly, regardless of their respective endowments.