Section 7.2: Economy and Labor Market
- Page ID
- 208208
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Economic Hardship and Wealth Disparities
Considering the income disparities described above, it should come as no surprise that Latin@ families continue to experience economic hardships and wealth disparities compared the general U.S. population. Sherer and Mayol-Garcia (2022) found that with the exception of Colombian-origin families, Latin@ families report higher levels of food hardships, housing hardships, and bill-paying hardships. They also found that net worth vary considerably across Latin@ subgroups. Although Cuban-origin families have the highest average net worth among Latin@ subgroups, their net worth is still less than half of the non-Latin@ median.
Latin@ Business Ownership: Positive Trends but Continued Challenges
According to the 2023 Stanford Annual Report on Latino Entrepreneurship, there are positive trends with regard to Latin@ Owned Businesses (LOBs) in the United States with continued challenges, especially for women and immigrant owners. The authors report that among the 63 million Latin@s in the U.S. (now making up 19% of the total population), the total economic output was $3.2 trillion dollars. The total number of businesses now numbers 5 million and total revenue from LOBs is now $800 billion. dollars. They also found that among tech-centric businesses, LOBs actually outperformed their white counterparts in "revenue growth and adoption of Artificial Intelligence", which represents an unexpected positive trend. However, when they analyzed the gender of business owners, they found that Latina-owned businesses have lower revenue compared to their male counterparts and lower rates of loan approval from national and local banks. This demonstrates that Latinas experience discrimination at the institutional level and provides yet another example of intersectional inequality.
The authors of this report also found mixed results when looking at immigrant owned businesses among Latin@s. Although a majority of LOBs (52%) were actually owned by immigrants, they faced disadvantages such as reporting lower revenue compared to their U.S. born Latin@ counterparts and subsequent generations.