Puerto Rican Segregation in the United States: Cause or Consequence of Economic Status?

Using a simultaneous equations model, this study examines cross-metropolitan variations in Puerto Rican residence and economic status. The study addresses the question: Are patterns of Puerto Rican residence a cause and/or consequence of Puerto Rican economic status? Our analytical approach is distinguished by its modeling of bi-directional causal relationships between residential location and income that are mediated partially by female headship rates and male labor force participation rates. The results from our weighted two-stage least squares regression analyses suggest that I) patterns of Puerto Rican segregation are a consequence of their economic status; and 2) the effect of segregation on median income is mediated by female headship and labor force participation rates. We also find evidence to suggest that the relationships between residential location and economic status for Puerto Ricans differ in important ways from those observed for Blacks and other Latino groups.