USC study examines impact of growing Latino population Print E-mail
Friday, 31 August 2007

By Kristen Poland

COLUMBIA -- The Latino population in South Carolina is growing at a more rapid pace than ever before and a report released Thursday at the 2007 Statewide Hispanic/Latino Issues Conference examines the impact of the Latino population on the state and its inhabitants by outlining demographics of the Latino population, the potential stress on the state's educational and health care systems, the impact on employment and wages and poverty level and use of social services.

Titled “The Economic and Social Implications of Latinos in South Carolina,” the report was prepared by the Consortium for Latino Immigration Studies at the University of South Carolina and sponsored by the S.C. Commission for Minority Affairs and the Center for International Business Education and Research (CIBER) at the Moore School of Business at USC.

Researchers Douglas Woodward and Elaine Lacy presented the report at the conference hosted by the S.C. Commission for Minority Affairs in Columbia. Woodward and Lacy are two of South Carolina's top authorities on the Mexican labor force in the state. Woodward is a professor of economics and director of the Division of Research in the Moore School of Business, and Lacy is research director for the Consortium for Latino Immigration Studies and a professor of history at the university's Aiken campus.

“We think it is very important that before we ask legislators to respond to this growing population that we first must understand the facts,” Woodward said.

Woodward said the Latino population increase in the state is due to a combination of a pushing force and pulling force. The pushing force is because of the poor economy in Latin American countries, specifically Mexico and the pulling force is job opportunities and wages as much as 10 times higher than those available in Latinos’ native countries.

According to census information used in the report, from 2000-2005 South Carolina’s foreign-born population grew faster than that in any other state and from 1990-2005 the Latino population in the state grew 350%. Still, the Latino population still makes up just 3.3% as of 2005. This number is believed to be low, however, due to the large number of undocumented Latino workers who likely did not participate in census studies. At 62%, Mexican-born immigrants make up the majority of the state’s Latino population.

The report showed that while more than 75% of the 503 Latinos surveyed speak little to no English, the report showed nearly 80% of their children speak English very well.

Some of the report’s key findings revealed that despite fears that the increased Latino population would have negative effects on South Carolina’s schools and hospitals, in fact it appears that in fact the additional costs to health care and education are small. According to 2006 data, only 3.7% of all South Carolina public school students are Hispanic. The largest school enrollment of Latino children is in Greenville County, followed by Beaufort, Spartanburg, Horry, Charleston, Lexington, Richland, Berkeley and York counties. In addition, about 40% of Latino students are fluent in English and fully integrated in mainstream classrooms.

As for health care, Latinos accounted for less than 2% of hospital discharges and an even lower percentage of emergency room visits. While study participants rated their health as “good,” almost 50% reported receiving no recent professional health care and 74% reported having no medical insurance.

In addition, the report showed that Latinos appear to have little impact on the state’s social services despite having the highest percentage rate of poverty levels. The study showed that in 2005 25.7% of Latinos in the state lived in poverty while black poverty levels were at 25.1%. Whites had a poverty level of just 9.3%.

The economic impact of the rising Latino population within the state appears to have far greater implications than that on health care, social services or education. The report analyzed possible effects of an increased Latino work force on wages and job opportunities available within the state.

“At the same time that more Latinos are entering South Carolina’s work force, median wages for those at the low-skill end of the spectrum are dropping,” the report stated. “According to the USC survey, the median annual earning for Latinos was $20,400, far below the median earnings for South Carolinians in general.”

The report showed that from 2000-05, median wages for full-time, white South Carolina workers increased by 1.2%, while falling by 1% for black South Carolinians and by 9.6% for Hispanics.

The effects of a larger Latino work force are most evident in specific industries—construction, animal slaughtering and landscaping. Construction jobs accounted for 38% of Latino employment, according to the survey and also showed a higher median annual wage for Latinos at $21,840. Yet, while the number of construction workers expanded 181% from 2000-2005 during the housing boom, real median earning for Latinos dropped approximately 12%. By comparison, black construction labor saw inflation-adjusted earning fall 2% and, interestingly, black employment dropped by 24% during that same time period. Employment among white construction workers increased by 4%, but their median earnings fell by more than that of black construction workers.

“Overall, for each of the three largest sectors with a Latino work force in South Carolina, African-Americans either lost jobs, saw earnings decline, or both (as was the case in the construction sector),” the report stated. “In sum, the economic effects of the Latino presence in the state are mixed. Wage depression may be occurring in some sectors. At the same time, for native black workers, just as for native white workers, one could conclude that the strong, growing economy in South Carolina could absorb new entrants from Latin America and also provide opportunities for the native work force.
This can be seen in the automotive sector, which, more than any other, has helped elevate black workers into the middle class in South Carolina in the recent period.”

The report suggests that, “a sensible strategy for the state is to focus on attracting and retaining such high-paying industries. Then all segments of the state’s population can potentially prosper, even with a larger pool of lower-skilled Hispanic labor.”

In conclusion, the report recommends leaders within the Latino community and lawmakers place importance on efforts to encourage the Latino population to participate in the upcoming 2010 U.S. Census so more accurate population demographics can be calculated.

In addition, the report calls for increased safe, affordable housing for low-income families and individuals and that public signs and information be printed in both English and Spanish to service the increased Spanish-speaking population.

The complete report is available online via the Moore School Division of Research at http://mooreschool.sc.edu/moore/research.

 
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