10 Monthly Labor Review September 2006

Second Generation Americans Second Generation Americans

Second-generation American workers—those with at least

one foreign-born parent—are more racially diverse

and better educated than their counterparts

in the third-and-higher generation; in terms

of labor force status, however, the two groups

have similar participation and unemployment rates

Labor force characteristics

of second-generation Americans

Abraham Mosisa

Abraham Mosisa is an

economist in the

Division of Labor Force

Statistics, Bureau of

Labor Statistics. E-mail:

Mosisa.Abraham@bls.gov

T his article documents the labor market

characteristics of second-generation

Americans compared with those of the

“third-and-higher” generation. Second-generation Americans are native-born Americans

who have either one parent or both parents who

are foreign born. Americans of the third-andhigher generation are native-born Americans

whose parents are both native born.1

This article examines the labor force status,

occupations, and earnings of second- and thirdand-higher-generation workers by a variety of

demographic characteristics including age, sex,

race or ethnicity,2 educational attainment, and

family status. (See box on page 11.) It also looks

at the labor market situation of the two groups

that make up the second generation—persons

whose parents are both foreign born (foreign

parentage) and persons who have one nativeborn parent and one foreign-born parent (mixed

parentage). The article uses data from the 2005

Annual Social and Economic Supplement (ASEC)

to the Current Population Survey (CPS).3

Demographics

In March 2005, there were 17.6 million secondgeneration Americans. They constituted 7.8

percent of the civilian noninstitutional population aged 16 years and older. Americans of the

third-and-higher generation numbered 174.8

million and made up 77.6 percent of the

population. (The remainder—about 15 percent—

were foreign born). There are some marked

demographic differences between the second

generation and the third-and-higher generation

in terms of age, race or ethnicity, and education.

(See tables 1 and 2.) A brief examination of the

differences (and similarities) between these

groups will be helpful in understanding their

respective labor market characteristics. For the

remainder of this article, native-born Americans

whose parents are both native born are called

“third generation” and should be understood to

include those who are third-and-higher generation.

One of the major differences between the

second generation and the third generation is the

noticeably smaller proportion of the second

generation who are aged 25 to 54 years, an age

group for which labor force participation tends

to be relatively high and unemployment

relatively low. Forty percent of the second

generation is in this broad age group, compared

with 55 percent of the third generation. In

contrast, as chart 1 shows, the proportion of the

second generation who are 65 years and older

(27.5 percent) is nearly double that of their thirdgeneration counterparts. Persons 65 years and
Monthly Labor Review September 2006 11

Native born

 Characteristic

 Age and sex

Total, 16 years and older ............... 17,638 174,839 32,759

 Percent ................................... 100.0 100.0 100.0

16 to 24 years ............................ 23.1 16.2 12.7

25 to 54 years ............................ 39.9 54.6 65.3

25 to 34 years ......................... 16.3 16.0 24.7

35 to 44 years ......................... 13.1 18.8 23.8

45 to 54 years ......................... 10.5 19.8 16.7

55 years and older...................... 37.0 29.2 22.0

55 to 64 years ......................... 9.6 14.0 10.5

65 years and older .................. 27.5 15.2 11.6

.......................................................

Men, 16 years and older ............... 8,507 83,658 16,538

 Percent ................................... 100.0 100.0 100.0

16 to 24 years ............................ 23.5 17.0 13.7

25 to 54 years ............................ 42.2 55.5 66.9

55 years and older...................... 34.3 27.6 19.4

55 to 64 years ......................... 9.1 13.9 9.9

65 years and older .................. 25.2 13.7 9.5

.......................................................

Women, 16 years and older .......... 9,131 91,182 16,221

 Percent ................................... 100.0 100.0 100.0

16 to 24 years ............................ 22.7 15.5 11.7

25 to 54 years ............................ 37.7 53.8 63.6

55 years and older...................... 39.5 30.6 24.7

55 to 64 years ......................... 10.0 14.0 11.1

65 years and older .................. 29.5 16.6 13.6

.......................................................

 Race and Hispanic or ........

 Latino ethnicity1 .....................

..............................................................................................

Total, 25 to 54 years ...................... 7,033 95,501 21,382

 Percent ................................... 100.0 100.0 100.0

White non-Hispanic or Latino ........ 52.5 78.8 17.8

Black non-Hispanic or Latino ........ 4.1 13.4 7.6

Asian non-Hispanic or Latino ........ 9.1 .4 23.4

Hispanic or Latino .......................... 31.1 5.3 50.2

1 Estimates for the above race groups will not sum to totals shown because

data are not presented for all races.

Second

generation

Foreign

born

older are less likely than their younger counterparts to be

labor force participants.

The difference in the age distributions between the second

generation and the third generation is at least partly a result

of changes in immigration laws that took place in the early

20th century when the flow of immigrants into the United

States was sharply restricted.4 (These restrictions remained

in effect until the passage of the Immigration and Nationality

Act of 1965, which eliminated the quota system based on

national origin or ancestry for immigration to the United

States). Because the wave of immigrants that entered the

country prior to 1924 was larger than the wave entering after

1924, the group of offspring of the pre-1924 wave was also a

large group and one that is now relatively old. Because the

inclusion of the disproportionately large population segment

that is 65 years and older would make comparisons of the

labor force characteristics between the second and third

generations problematic, this article focuses primarily on

persons aged 25 to 54 years.

Race and ethnicity. The second generation is more racially

diverse than their third-generation counterparts. Overall, 31.1

percent of the second generation 25- to-54-year-olds are

Hispanic or Latino and 9.1 percent are Asian non-Hispanic.

By comparison, 5.3 percent of the third-generation 25- to 54-

year-olds are Hispanic or Latino and 0.4 are Asian nonHispanic. In contrast, about four-fifths of the third generation

25- to 54-year-olds are white non-Hispanics, compared with a

little more than half of the second generation. Black nonHispanics make up 13.4 percent of the third generation, but

only 4.1 percent of the second generation. (See table 1 and

chart 2.)

Education. Understanding the educational characteristics

of the second generation is important to interpreting several

features of their labor market characteristics. In general,

second-generation individuals have somewhat higher

educational attainment than their third-generation

counterparts. In March 2005, for example, 38 percent of the

second-generation 25- to 54-year-olds had graduated from

college, compared with 29.7 percent of their third-generation

counterparts. (See table 2.) In addition, the proportion of the

second generation with graduate-level degrees (master’s,

professional or doctoral) was 12.0 percent, compared with 9.2

percent of the third generation.5

For all the major race and ethnic groups, the proportions

of the second-generation 25- to 54-year-olds with college

degrees are higher than those of the third generation. The

largest difference is among blacks—36.9 percent of the

second generation had college degrees, compared with 18.2

 The youngest of the second-generation workers who

were 16 years old in 2005 were born in 1989. Therefore,

the parents of today’s second-generation Americans

of working age can only be the foreign born who

arrived in the United States before 1989. For example,

of the 32.6 million foreign born in 2005, about 65 percent

entered the United States between 1989 and 2005. As a

result, most of the foreign born today are not the

parents of the second-generation workers under study.

Therefore, comparisons of the labor market situation

of the foreign born to that of the second generation are

not made.

Who are secondgeneration workers?

Third-andhigher

generation

Table 1.

Percent distribution of the civilian non-

 institutional population by nativity and by

 selected characteristics, March 2005

(Numbers in thousands)

Table 1.
12 Monthly Labor Review September 2006

Second Generation Americans

0

10

20

30

40

50

60

70

80

0

10

20

30

40

50

60

70

80

 Characteristic

 Second generation

Total ..................................................................... 7,033 100.0 8.1 23.7 30.2 38.0

 Men ................................................................... 3,587 100.0 8.6 25.9 29.5 36.0

 Women .............................................................. 3,446 100.0 7.5 21.4 31.0 40.1

............................................................................

White non-Hispanic or Latino ............................. 3,691 100.0 4.0 22.9 29.1 44.0

Black non-Hispanic or Latino ............................. 285 100.0 4.6 25.5 33.0 36.9

Asian non-Hispanic or Latino ............................. 641 100.0 4.8 12.6 20.7 62.0

Hispanic or Latino ............................................... 2,188 100.0 16.9 28.0 33.9 21.1

............................................................................

 Third-and-higher generation

Total ..................................................................... 95,501 100.0 7.9 32.8 29.6 29.7

 Men ................................................................... 46,410 100.0 8.6 35.3 27.3 28.8

 Women .............................................................. 49,091 100.0 7.2 30.5 31.7 30.6

............................................................................

White non-Hispanic or Latino ............................. 75,272 100.0 6.3 31.5 29.4 32.8

Black non-Hispanic or Latino ............................. 12,814 100.0 12.3 40.2 29.4 18.2

Asian non-Hispanic or Latino ............................. 407 100.0 3.7 14.3 24.9 57.1

Hispanic or Latino ............................................... 5,072 100.0 20.2 35.5 29.2 15.1

............................................................................

Total, aged 25

to 54 years (in

thousands)

Less than

a high

school

diploma

High

school

graduates,

no

college

Some

college

or

associate

degree

Bachelor’s

degree

and

higher

Percent

Chart 1. Age distribution of the civilian noninstitutional population 16 years and older of the second

 generation, third-and-higher generation, and foreign born, March 2005

Percent Percent

Second generation Third-and-higher generation Foreign born

Table 2. Educational attainment of the second generation and the third-and-higher generation, native-born civilian

noninstitutional population aged 25 to 54 years by sex, race, and Hispanic or Latino ethnicity, March 2005

16 to 24 years

25 to 54 years

65 years and older

55 to 64 years
Monthly Labor Review September 2006 13

Table 3. .Labor force participation rates of the second generation and the third-and-higher generation, native-born

 population by selected characteristics, March 2005

Total Men Women

 Age

Total, 16 years and older ........................ 51.6 62.6 56.8 67.7 46.8 57.8

16 to 24 years ..................................... 45.2 53.2 46.1 52.7 44.2 53.7

25 to 54 years ..................................... 79.6 79.2 84.9 84.7 74.0 74.0

25 to 34 years ................................. 77.7 78.2 81.7 84.1 73.3 72.7

35 to 44 years ................................. 81.3 80.5 88.8 86.5 73.8 74.9

45 to 54 years ................................. 80.3 78.7 85.1 83.4 75.5 74.2

55 years and older .............................. 25.5 36.7 29.6 42.9 22.2 31.6

55 to 64 years ................................. 62.1 60.6 66.0 66.4 58.7 55.3

65 years and older ........................... 12.8 14.7 16.5 18.9 9.8 11.6

................................................................

 Educational attainment,

 aged 25 to 54 years ............

Less than a high school diploma ........... 68.9 63.6 77.0 72.2 59.0 53.8

High school graduates, no college ......... 79.1 80.5 86.7 86.9 69.6 73.6

Some college, no degree ........................ 85.5 84.4 92.4 90.5 78.6 79.5

College graduates ................................... 87.6 89.4 93.1 95.3 82.4 84.1

................................................................

Race and Hispanic or Latino ethnicity,

 aged 25 to 54 years ................

................................................................

White non-Hispanic or Latino ................. 84.5 84.2 90.9 90.9 77.7 77.7

Black non-Hispanic or Latino ................. 79.9 78.7 85.1 79.7 74.9 77.9

Asian non-Hispanic or Latino ................. 80.9 80.3 84.1 87.2 77.0 73.7

Hispanic or Latino ................................... 82.8 78.8 90.5 85.5 75.2 72.5

 Second

generation

Second

generation

Second

generation

Characteristic Thirdand-higher

generation

Thirdand-higher

generation

Thirdand-higher

generation

Chart 2. Percent distribution of second generation and third-and-higher generation,

 aged 25 to 54 years, by race, and Hispanic or Latino ethnicity, March 2005

White non-Hispanic

Black non-Hispanic

Asian non-Hispanic

Hispanic or Latino

Other

Second generation

White non-Hispanic

Black non-Hispanic

Asian non-Hispanic

Hispanic or Latino

Other

Third-and-higher

generation
14 Monthly Labor Review September 2006

Second Generation Americans

Table 4. Unemployment rates of the second generation and the third-and-higher generation, native-born population

 by selected characteristics, March 2005

Total Men Women

 Age

Total, 16 years and older ............................. 6.4 5.6 7.3 6.1 5.3 5.0

16 to 24 years .......................................... 12.9 12.7 15.2 14.5 10.4 10.8

25 to 54 years .......................................... 4.6 4.6 5.5 4.9 3.6 4.2

25 to 34 years ...................................... 6.6 5.9 8.2 6.1 4.5 5.7

35 to 44 years ...................................... 3.2 4.3 3.5 4.6 3.0 3.9

45 to 54 years ...................................... 3.4 3.7 3.9 4.1 2.8 3.4

55 years and older ................................... 4.3 3.4 4.0 3.7 4.7 3.2

55 to 64 years ...................................... 4.0 3.5 4.0 3.8 4.1 3.2

65 years and older ................................ 4.8 3.3 4.0 3.4 5.8 3.1

.....................................................................

 Education, 25 to 54 years old

.....................................................................

Less than a high school diploma ................ 8.3 11.9 6.5 10.7 11.2 13.8

High school graduates, no college .............. 6.4 5.8 8.4 6.2 3.3 5.2

Some college, no degree ............................. 4.6 4.3 6.4 4.5 2.5 4.2

College graduates ........................................ 3.1 2.2 2.7 2.4 3.5 2.0

.....................................................................

 Presence and age of own children

 25 to 54 years old

.....................................................................

With own children under 18 ......................... 3.4 3.8 4.2 3.3 2.6 4.2

With children 6 to 17 only ........................ 3.6 3.6 4.2 3.2 3.0 3.9

With children under 6 ................................ 3.3 4.0 4.2 3.4 2.2 4.8

With own children under 3 ..................... 3.6 3.8 4.6 3.2 2.4 4.5

Characteristic

Second

generation

Second

generation

Second

generation

percent of the third generation. At least some of the secondgeneration blacks are the offspring of African parents or

Caribbean parents (or some combination of both) who came

to the United States to pursue higher education. The

difference in educational attainment is smallest among Asians

and Hispanics or Latinos. For example, among Hispanics or

Latinos, 21.1 percent of the second generation had college

degrees, compared with 15.1 percent of the third generation.

Labor force status

In March 2005, second-generation persons aged 25 to 54 were

about equally likely to be labor force participants as their

third-generation counterparts, 79.6 percent and 79.2 percent,

respectively. This was true for both men and women. For

both generations, men were more likely to be labor force

participants than women. (See table 3.)

Education. The labor force participation rates of secondand third-generation 25- to 54-year-olds with high school

diplomas and those with some college (no degree) are quite

similar. Among those without a high school diploma, however, the participation rate of the second generation is

higher—68.9 percent—than that of the third generation—

63.6 percent. Third-generation workers with college degrees

are somewhat more likely to be labor force participants than

their counterparts in the second generation.

Race and ethnic origin. The labor force participation rates

of second- and third-generation whites and Asians (aged 25

to 54 ) are about the same. In contrast, second-generation

Hispanics or Latinos and blacks in the same age group are

more likely to be labor force participants than their thirdgeneration counterparts.

Mothers. Overall, as the following tabulation shows, thirdgeneration women with children under 18 years of age are

more likely to be labor force participants than their secondgeneration counterparts:

Labor force participation rates

Second Third-and-higher

generation generation

With own children under 18

 years .................................. 73.1 75.3

With children 6 to 17 years,

none younger ...................... 79.0 79.6

With children under 6 years 67.1 68.5

Thirdand-higher

generation

Thirdand-higher

generation

Thirdand-higher

generation
Monthly Labor Review September 2006 15

Table 5. Occupational distribution of the employed second generation and third-and-higher generation, native-born

 Second generation Third-and-higher generation

Total Men Women Total Men Women

 Total

Total .......................................................................................................... 100.0 100.0 100.0 100.0 100.0 100.0

 Management, business, and financial operations occupations .......... 17.6 16.7 18.8 16.3 17.2 15.4

 Professional and related occupations ................................................. 27.1 22.4 32.8 22.8 17.7 28.3

 Service occupations ............................................................................ 12.1 11.5 12.8 13.1 10.2 16.2

 Sales and office occupations .............................................................. 24.9 19.3 31.6 24.7 16.8 33.2

 Natural resources, construction, and maintenance occupations ....... 8.2 14.7 .4 10.5 19.4 1.0

 Production, transportation, and material moving occupations ........... 10.0 15.4 3.6 12.6 18.8 5.9

 White non-Hispanic or Latino

Total .......................................................................................................... 100.0 100.0 100.0 100.0 100.0 100.0

 Management, business, and financial operations occupations .......... 20.8 21.2 20.2 17.5 18.7 16.2

 Professional and related occupations ................................................. 30.0 23.7 37.7 24.0 18.7 29.9

 Service occupations ............................................................................ 10.5 9.4 11.8 11.4 8.7 14.5

 Sales and office occupations .............................................................. 21.8 17.5 27.0 24.6 16.9 33.3

 Natural resources, construction, and maintenance occupations ....... 8.1 14.8 .2 11.0 19.9 1.0

 Production, transportation, and material moving occupations ........... 8.7 13.4 3.1 11.5 17.1 5.3

 Black non-Hispanic or Latino

Total .......................................................................................................... 100.0 100.0 100.0 100.0 100.0 100.0

 Management, business, and financial operations occupations .......... 12.1 8.2 15.9 10.6 8.5 12.3

 Professional and related occupations ................................................. 30.3 30.0 30.6 17.4 11.6 22.1

 Service occupations ............................................................................ 12.6 10.6 14.7 21.5 18.4 24.1

 Sales and office occupations .............................................................. 32.2 25.7 38.6 24.4 16.3 30.8

 Natural resources, construction, and maintenance occupations ....... 3.6 7.3 – 7.1 14.8 .9

 Production, transportation, and material moving occupations ........... 9.2 18.3 .3 19.0 30.5 9.8

 Asian non-Hispanic or Latino

Total .......................................................................................................... 100.0 100.0 100.0 100.0 100.0 100.0

 Management, business, and financial operations occupations .......... 19.0 14.3 25.3 19.2 19.9 18.4

 Professional and related occupations ................................................. 36.7 37.9 35.1 31.1 26.6 35.8

 Service occupations ............................................................................ 10.2 11.6 8.4 12.4 13.8 11.0

 Sales and office occupations .............................................................. 22.7 18.9 27.8 27.3 24.3 30.4

 Natural resources, construction, and maintenance occupations ....... 4.9 8.2 .5 4.0 7.7 –

 Production, transportation, and material moving occupations ........... 6.5 9.1 2.9 6.0 7.7 4.3

 Hispanic or Latino ethnicity

Total .......................................................................................................... 100.0 100.0 100.0 100.0 100.0 100.0

 Management, business, and financial operations occupations .......... 12.3 10.5 14.4 12.7 12.5 12.9

 Professional and related occupations ................................................. 19.2 13.7 25.7 16.5 12.7 20.8

 Service occupations ............................................................................ 15.6 15.6 15.5 18.8 16.1 21.9

 Sales and office occupations .............................................................. 29.6 22.0 38.7 26.8 17.3 37.4

 Natural resources, construction, and maintenance occupations ....... 9.8 17.5 .7 10.6 19.3 .8

 Production, transportation, and material moving occupations ........... 13.5 20.7 5.0 14.6 22.2 6.2

Dash indicates missing values

In March 2005, 75.3 percent of third-generation mothers

were in the labor force, compared with 73.1 percent of secondgeneration mothers. The difference in participation rates

between mothers in the two generations was mostly among

those with children under 6 years of age.

Unemployment. Overall, the unemployment rate for members

of the second generation aged 25 to 54 years is the same as that

for the same age group in the third generation. The jobless rate

among second-generation men is higher than that for their thirdgeneration counterparts; among women, the unemployment

 rate for those in the second generation is lower than that for

those in the third generation. (See table 4.)

The unemployment rate of second-generation mothers with

 Characteristic

population 25 to 54 years old by sex, race, and Hispanic or Latino ethnicity, March 2005
16 Monthly Labor Review September 2006

Second Generation Americans

Table 6. Median annual earnings in 2004 of the second

 generation and third-and-higher generation,

 native-born population by age, sex, race, and

 Hispanic or Latino ethnicity

 Age and sex

Total, 16 years and older ................... $38,016 $36,840

16 to 24 years ................................. 20,706 20,775

25 to 54 years ................................. 40,417 38,982

55 years and older ........................... 41,644 39,526

...........................................................

Men, 16 years and older ................... 42,042 41,688

16 to 24 years ................................. 20,006 22,224

25 to 54 years ................................. 44,414 43,261

55 years and older ........................... 50,833 47,346

...........................................................

Women, 16 years and older .............. 33,653 30,886

16 to 24 years ................................. 22,563 19,593

25 to 54 years ................................. 36,275 32,552

55 years and older ........................... 34,656 31,603

...........................................................

 Race and Hispanic or

 Latino ethnicity

White non-Hispanic, total .................. 42,623 39,241

16 to 24 years ................................. 22,872 21,284

25 to 54 years ................................. 44,500 40,452

55 years and older ........................... 43,198 40,513

...........................................................

Black non-Hispanic, total .................. 34,478 29,790

16 to 24 years ................................. 24,749 19,890

25 to 54 years ................................. 40,740 30,210

55 years and older ........................... 30,698 30,432

...........................................................

Asian non-Hispanic, total .................. 41,256 46,796

16 to 24 years ................................. 27,329 23,145

25 to 54 years ................................. 47,200 47,836

55 years and older ........................... 43,680 51,795

...........................................................

Hispanic or Latino ethnicity, total...... 30,069 30,500

16 to 24 years ................................. 18,720 19,967

25 to 54 years ................................. 33,292 32,694

55 years and older ........................... 39,210 30,667

Third-andhigher

generation

Characteristic Second

generation

children under age 18 was 2.6 percent in March 2005, compared

with 4.2 percent for the third generation. Second-generation

mothers with children under 3 years of age were also less likely

to be unemployed than those of the third generation.

Occupation

As a group, second-generation workers in the 25- to 54-year age

group are somewhat more likely than their third-generation

counterparts to be employed in professional and related

occupations, and in management, business, and financial

operations occupations. In contrast, third-generation workers

are more likely than second-generation workers to be employed

in production, transportation, and material moving occupations and in natural resources, construction, and maintenance

occupations. (See table 5 on p. 15.)

Among second-generation male workers aged 25 to 54,

the largest three occupational shares are professional and

related occupations (22.4 percent), sales and office

occupations (19.3 percent), and management, business, and

financial operations occupations (16.7 percent). Among

third-generation male workers, the largest three occupational

shares are natural resources, construction, and maintenance

occupations (19.4 percent); production, transportation, and

material moving occupations (18.8 percent); and professional

and related occupations (17.7 percent).

Among women workers, those who are second generation

are a little more likely than those who are third generation to be

employed in professional and related occupations and in

management, business, and financial operations. In contrast,

third-generation women workers are more likely to be employed

in service occupations and in production, transportation, and

material moving occupations. The largest shares of both groups

work in sales and office occupations (about 1 in 3 of each group),

mostly in the office and administrative support occupations

component. (See table 5.)

Among the major race and ethnic groups, secondgeneration whites, blacks and Asians are more likely to be

employed in professional and related occupations than their

counterparts in the third generation. Among blacks, the

proportion of second-generation workers employed in

professional and related occupations is much larger than that

of third-generation workers, perhaps because secondgeneration blacks are more likely to be college graduates.

Hispanics of both generations are concentrated in sales

occupations, reflecting in part the relatively low proportions

of Hispanics with college degrees. Third generation

Hispanics are more likely to be employed in service

occupations than their second-generation counterparts.

Earnings

In 2004, about 4.5 million (88.2 percent) second-generation

workers aged 25 to 54 years and 60.8 million (86.8 percent)

third-generation workers in the same age group were

employed full-time, year-round. The 2004 median annual

earnings of the second-generation workers were $40,417,

somewhat higher than the $38,982 for their third-generation

counterparts.7

The difference was largely because second-generation

women workers had median earnings that were considerably

higher ($36,275) than those of their third-generation

counterparts ($32,552). There was relatively little difference

in median earnings among men for the two generations. (See

table 6.)

Foreign and mixed parentage

The second generation can be subdivided into two roughly
Monthly Labor Review September 2006 17

Table 7. Selected characteristics of the second generation native-born population by parentage, March 2005

(Numbers in thousands)

Total Men Women

Mixed Foreign Mixed Foreign Mixed Foreign

parentage1 parentage2 parentage1 parentage2 parentage1 parentage2

Total, 16 years and older .................................. 8,759 8,879 4,244 4,263 4,515 4,616

Percent ........................................................ 100.0 100.0 100.0 100.0 100.0 100.0

16 to 24 years ................................................. 19.0 27.2 19.3 27.8 18.7 26.7

25 to 54 years ................................................. 44.5 35.3 45.8 38.5 43.2 32.4

55 years and older .......................................... 36.6 37.4 34.9 33.7 38.1 40.9

55 to 64 years ............................................. 14.1 5.1 13.4 4.8 14.7 5.3

65 years and older ....................................... 22.5 32.4 21.5 28.9 23.4 35.6

 Race and Hispanic or Latino ethnicity3

Total, 25 to 54 years ........................................... 3,895 3,138 1,945 1,642 1,951 1,496

Percent ............................................................ 100.0 100.0 100.0 100.0 100.0 100.0

White non-Hispanic or Latino ............................. 65.9 35.8 65.8 37.2 66.0 34.3

Black non-Hispanic or Latino ............................. 2.9 5.5 2.6 5.4 3.2 5.6

Asian non-Hispanic or Latino ............................. 3.6 15.9 3.6 17.2 3.7 14.5

Hispanic or Latino ............................................... 22.8 41.4 23.0 39.0 22.6 44.1

 Educational attainment

Total, 25 to 54 years old: percent ...................... 100.0 100.0 100.0 100.0 100.0 100.0

 Less than a high school diploma ................... 6.9 9.5 8.6 8.7 5.2 10.5

 High school graduates, no college ................ 25.9 21.0 28.1 23.3 23.7 18.4

 Some college, no degree ............................... 30.7 29.6 29.9 29.0 31.5 30.4

 College graduates .......................................... 36.5 39.9 33.4 39.1 39.6 40.8

 Employment status, 25 to 54 years old ...

............................................................................

 Civilian labor force ............................................ 3,283 2,584 1,752 1,470 1,531 1,114

Labor force participation rate ...................... 84.3 82.3 90.1 89.5 78.5 74.5

Employed ......................................................... 3,146 2,449 1,662 1,382 1,484 1,067

Employment-population ratio ....................... 80.8 78.0 85.5 84.2 76.1 71.3

Unemployed ..................................................... 137 135 90 88 47 47

Unemployment rate ...................................... 4.2 5.2 5.1 6.0 3.1 4.2

 Occupation

Total 25 to 54 employed: percent ..................... 100.0 100.0 100.0 100.0 100.0 100.0

Management, business, and financial

 operations occupations ............................... 17.9 17.3 16.4 17.0 19.7 17.6

Professional and related occupations ............ 27.0 27.3 21.4 23.5 33.2 32.2

Service occupations ....................................... 12.6 11.5 11.9 11.1 13.4 12.0

Sales and office occupations ......................... 24.5 25.5 19.5 19.0 30.0 33.9

Natural resources, construction, and .............

maintenance occupations ............................. 8.2 8.2 15.2 14.2 .3 .4

Production, transportation, and material

 moving occupations .................................... 9.8 10.3 15.6 15.2 3.3 3.9

 Earnings

Median annual earnings of year-round, full-time

workers, 25 to 54 years ................................. $41,036 $39,567 $45,375 $43,346 $37,039 $35,489

Characteristic

1 Refers to second-generation Americans with one parent who is foreign

born and the other native born.

 2 Refers to second-generation Americans with both parents foreign born.

 3 Estimates for the above race groups will not sum to totals shown

because data are not presented for all races.

equal groups based on the nativity of the parents. One group

is the offspring of couples in which one parent is foreign born

and the other native born (“mixed parentage”). The other

group is the offspring of couples in which both parents are

foreign born (“foreign parentage”).

The demographic characteristics of second-generation

workers of mixed parentage differ from those of secondgeneration workers of foreign parentage. In terms of age, the

proportion of mixed-parentage, second-generation workers

who are 25- to 54-year-olds is higher than those whose
18 Monthly Labor Review September 2006

Second Generation Americans

Overall, the median annual earnings in 2004 of full-time,

year-round workers who were of mixed parentage were

$41,036, compared with $39,567 for those who were of foreign

parentage. Among the men, median earnings of those of mixed

parentage were $45,375, compared with $43,346 for those who

were of foreign parentage. Among the women, the median

annual earnings of those of mixed parentage were also

somewhat higher than the earnings of those who were of

foreign parentage ($37,039 and $35,489, respectively).

IN SUMMARY, THERE ARE MARKED DIFFERENCES between secondgeneration American workers and their third-and-higher

generation counterparts in terms of age, race and ethnicity,

and education. A smaller proportion of the second generation is

aged 25 to 54 years—an age group characterized by relatively

high labor force participation and low unemployment, compared

with their third-generation peers. The second generation is more

racially diverse than the third generation; and secondgeneration individuals tend to have higher levels of education

than their third-generation counterparts.

In terms of their labor market status, it appears that

members of the second generation of American workers have

achieved parity with their third-generation counterparts;

indeed, in some respects, they may have become more

successful. One of the key factors for the second generation’s success lies in educational attainment. The second

generation has taken advantage of access to education and

38.0 percent of those aged 25 to 54 years have at least a

bachelor’s degree, compared with 29.7 percent of the third

generation.

Second-generation workers aged 25 to 54 are about as

likely as their third-generation counterparts to be labor force

participants and the jobless rate for both groups is about the

same. Perhaps reflecting the higher proportion with college

degrees, second-generation workers are somewhat more

likely than third-generation workers to be employed in

professional and related occupations, and in management,

business, and financial operations. The median annual

earnings of second-generation workers are somewhat higher

than those of their third-generation counterparts. Finally, the

two groups that make up the second generation—those of

foreign parentage and mixed parentage—are about equally

likely to be in the labor force, to work in similar occupations,

and to earn about the same. 

parents are both foreign born—44.5 percent and 35.3 percent,

respectively. In contrast, the proportion of mixed-parentage

workers who are either aged 65 years and older or aged less

than 25 years is lower than that of those with foreign

parentage. The two groups also differ in terms of race and

ethnic composition. Notably, those of mixed parentage are

more likely to be white (65.9 percent) than those with foreignborn parentage (35.8 percent); 22.8 percent of workers of mixed

parentage are Hispanic or Latino and 41.4 percent of those of

foreign-born parentage are members of that ethnic group.

With regard to educational attainment, those of foreign

parentage are somewhat more likely to have college degrees,

but they also are more likely to be high school dropouts than

those of mixed parentage. Those of mixed parentage are more

likely to have some college or associates degrees and to be

high school graduates. Men with foreign parentage are more

likely to have college degrees than those of mixed parentage.

Among the women, however, both groups are about equally

likely to have college degrees.

In March 2005, the labor force participation rates of 25- to

54-year-old workers of mixed parentage was 84.3 percent,

compared with 82.3 percent for those of foreign parentage.

The difference in participation between the two groups stems

from the higher participation among women of mixed

parentage compared with those of foreign parentage. Foreignand-mixed-parentage men, however, are about equally likely

to be labor force participants. Among both the foreign- andmixed-parentage groups, men are more likely to be labor force

participants than women. (See table 7.)

Overall, the unemployment rate for those of foreign

parentage in the 25- to 54-year age group was somewhat

higher than that of their mixed-parentage counterparts (5.2

percent and 4.2 percent, respectively) in March 2005. The

jobless rate among both the men and the women of mixed

parentage was lower than that for of their foreign-parentage

counterparts.

Turning to occupations, foreign-parentage male workers

aged 25 to 54 years are more likely to be employed in

professional and related occupations than their mixedparentage counterparts. Among the women, those of mixed

parentage are more likely to be employed in management,

business, and financial operations occupations, while those

of foreign parentage are more likely to be employed in sales

and office occupations.

Notes

1 Native-born persons include those born in the United States,

Puerto Rico, or an outlying area of the United States (such as Guam or

the U.S. Virgin Islands), and persons who were born in a foreign country

but who had at least one parent who was a U.S. citizen. Native-born

persons with either parent (or both) born in a foreign country are

considered second generation. Native-born persons with neither parent

foreign bom are considered third-and-higher generation. The foreign

born are considered first generation.

2

 In this article, the usual BLS practice of counting Hispanics (an

ethnic group) as part of the race category to which they belong has

not been followed; instead of including Hispanics among the race
Monthly Labor Review September 2006 19

groups whites, blacks, and Asians, in this article they are shown

separately. People of Hispanic origin may be of any race, including

white, black, Asian, and some other race. In regular BLS practice,

Hispanic-origin groups are included in both the white, Asian, and

black population groups.

3

 The Annual Social and Economic (ASEC) Supplement, formerly

known as the Annual Demographic Survey, contains the basic monthly

demographic and labor force data, plus additional data on work

experience, income, non-cash benefits, and migration. More detailed

information regarding ASEC can be accessed from the Census Bureau

Web site at the following Internet address: http://www.census.gov/

apsd/techdoc/cps/cpsmar04.pdf

4

 For a more detailed discussion on the brief history of immigration

and migration, see Abraham Mosisa, Terence McMenamin, and

Howard Hayghe, “Counting Minorities: A Brief History and a Look at

the Future,” Report on the American Workforce (U.S. Department of

Labor, 2001), chapter 1.

5

 A 1995 study by Grace Kao and Marta Tienda showed that foreignborn parents have significantly higher educational aspirations for

their children than do native-born parents. Thus, parental nativity

status appears to be a crucial factor shaping the educational aspirations

of their children. See Grace Kao and Marta Tienda, “Optimism and

achievement: The educational performance of immigrant youth,”

Social Science Quarterly, March 1995, pp. 1–19.

6 For a detailed explanation of money income, see “Current

Population Survey (CPS) - Definitions and Explanations,” on the Census

Bureau Web site at the following Internet address: http://

www.census.gov/population/www/cps/cpsdef.html