Explaining the Growth of Puerto Rican Poverty, 1970-1980

With data from the U.S. Bureau of the Census 1970 Public Use Samples and 1980 Public Use Microdata Sample tape files for 34 metropolitan statistical areas, the authors examine cross-metropolitan variations in Puerto Rican poverty, using an instrumental variables regression model. The analyses highlight the role of residential segregation and economic restructuring on Puerto Rican poverty in 1970 and 1980. Decomposition of changes during the 1970s revealed that the primary sources responsible for increased Puerto Rican poverty rates were structural: The effects of segregation on poverty grew stronger during the decade, and the ability of manufacturing employment and self-employment to attenuate poverty grew weaker.