William Kandel
Economic Information Bulletin Number 8,
December 2005
Between 1980 and 2000, the Hispanic/Latino population
in rural and smalltown America nearly doubled from 1.4
to 2.7 million and is now the most rapidly growing segment
of the population in nonmetropolitan (nonmetro) counties.
In 1980, Hispanics constituted just over 3 percent of
the nonmetro population, a figure that rose to 5.5 percent
in 2000. Since 1980, growth in the Hispanic population
has contributed over 25 percent of the total nonmetro
population increase and over 50 percent of the nonmetro
minority population increase.
Hispanic population growth has helped to stem decades
of smalltown population decline in some States, demographically
and economically revitalizing many rural communities.
Hispanic population growth in new destinations outside
traditional Hispanic settlement areas in the nonmetro
Southwest can drive change in local economies and can
raise questions about social service provision, socioeconomic
adaptation and integration, and other important public
policy issues for nonmetropolitan counties.
USDA’s Economic Research Service (ERS) analyzes
ongoing changes in rural areas and assesses Federal, State,
and local strategies to enhance economic opportunities
and quality of life for all rural Americans. As part of
this analysis, ERS researchers compare current demographic,
social, and economic indicators for rural Hispanics with
those for other nonmetro residents.
Population Change and Geography
Hispanics Are the Fastest Growing Population in Rural
America
While Hispanics make up less than 6 percent of the
entire nonmetro population of 46 million, their growth
rate since 1980 outpaces that of all other major racial
and ethnic groups. Of the four major minority groups,
only nonmetro Blacks outnumber nonmetro Hispanics (4.1
million to 2.7 million). At current growth rates, however,
Hispanics are projected to become the largest minority
group in rural America by about 2025, as they did for
the entire Nation in 2003.
The sizable and recent Hispanic (and Asian) population
growth nationally stems from changes in immigration laws
and economic growth. In addition, because many foreign-born
minorities tend to be relatively young, they are more
likely to have children, further increasing their share
of the population.
Nonmetro Hispanics Are Dispersing Nationally and
Concentrating in New Rural Destinations
For the first time in 2000, half of all nonmetro Hispanics
lived outside the Southwest. While almost all nonmetro
counties experienced Hispanic population growth, roughly
a third of this growth occurred in just 150 counties dominated
by low-skill industries. Between 1990 and 2000:
- The nonmetro Hispanic population more than doubled
in 20 (mostly Southern and Midwestern) States, with
growth rates ranging from 120 to over 400 percent.
- Of 2,052 nonmetro counties, the number in which Hispanics
constitute at least 1 percent of the population grew
from 817 to 1,387; the number in which Hispanics constitute
at least 10 percent grew from 211 to 287.
Hispanics Help To Slow Population Loss in Rural America
Hispanic population growth has checked long-term population
decline in many rural counties, especially in Midwestern
and Great Plains States where natural decrease and outmigration
by young native-born adults have been reducing population
in some areas since the 1950s or earlier.
All else being equal, over 100 nonmetro counties would
have lost population between 1990 and 2000 if not for
growth in the Hispanic population. Nearly 500 other nonmetro
counties with Hispanic population gains experienced a
net population loss, nonetheless, because of non-Hispanic
population declines.
Population Composition
U.S. Hispanic Population Is Diverse
In rural areas, as elsewhere, Hispanics comprise many
nationalities and range widely across virtually every
socioeconomic indicator. These dimensions include education,
occupation, median age, citizenship, race, and history
in the United States—even within groups. For example,
the largest ethnic group, Mexicans, includes many citizens
who trace their ancestors’ U.S. settlement back
for hundreds of years, as well as new residents. Hispanic
residents in newer rural destinations, while ethnically
diverse, include larger proportions of recent U.S. migrants
than are found in more established settlement areas.
Recent inmigration helps explain differences in the demographic
and socioeconomic profile of nonmetro Hispanics compared
with non-Hispanic residents. The foreign-born represent
at least a third of all nonmetro Hispanics, and their
presence is more highly concentrated in the newer destination
regions of the Southeast and Midwest. Like young adults
everywhere, recent nonmetro Hispanic inmigrants often
relocate for new jobs.
- Recent Hispanic arrivals to nonmetro counties are
more likely than other nonmetro residents to be younger
and male, which explains the significantly higher male/female
ratio between the two groups. Because many nonmetro
Hispanics work at lower paying jobs and send money back
to their families in their home countries, they are
also more likely than other nonmetro residents to live
in shared and often crowded housing.
- The foreign-born proportion varies inversely with
the percentage of Hispanics who speak English fluently
and who have U.S. citizenship, two clear measures of
socioeconomic integration. Data from the 2003 Census
indicate that almost three-quarters of all nonmetro
Hispanics reported that they spoke English “very
well” or exclusively, a tendency that increases
with more time in the United States and especially with
exposure to U.S. schooling.
- Hispanics trail the U.S. average in years of schooling.
Recent migrants often originate from poor rural communities
with few educational or career options. Consequently,
while Hispanics represent a small proportion of the
nonmetro population, their growing importance to the
nonmetro labor force will depend on their educational
attainment, particularly for second-generation Hispanic
children growing up as United States citizens.
Selected nonmetro demographic
indicators, 2000 and 2003 |
|
Characteristic |
Hispanic |
Non-Hispanic
White |
|
Demographic
Percent foreign born (2003)
Median age (2003)
Percent of population under 18 (2000)
Percent of population 65 and older (2000)
Male/female ratio (2000)
Average persons in household (2003)
Average children in household (2003)
Socioeconomic incorporation and assimilation
Percent speaking English “very well”
(2003)
Percent citizen (2003)
Education (persons age 25+)
Percent with a high school diploma (2003)
Percent with a college degree (2003) |
34
27.7
37
6
1.09
4.1
1.8
73
75
53
6
|
2
37.8
23
18
0.96
3.1
1.0
99
99
86
17
|
|
Source: Compiled by
ERS using the 2002, 2003, and 2004 Current Population
Survey, March Supplement |
Economic and Social Indicators
Use of Nonmetro Social Services Varies by Program
Despite limited economic resources, Hispanic participation
in national safety-net programs remains relatively modest.
Such participation and eligibility often depend on household
economic status, citizenship, and individual legal status,
and requirements for some programs may vary by State.
For medical care, Hispanics and non-Hispanic Whites have
participation rates that reflect their respective age
profiles: while Hispanics are twice as likely to enroll
in Medicaid, they are half as likely to participate in
Medicare. However, for food stamps and the USDA’s
WIC program (Special Supplemental Nutrition Program for
Women, Infants, and Children), Hispanic participation
rates are substantially higher than rates for non-Hispanic
Whites. Participation in public housing programs does
not differ substantially.
School enrollment is an important indicator of changes
in rural demography. Lower median ages and relatively
higher fertility rates of Hispanic residents have yielded
a
Hispanic school-age population that is growing far more
rapidly than that of other groups. Hispanic children still
constitute a small proportion of the nonmetro school-age
population, and their growing numbers benefit rural school
districts with declining enrollments that receive State
funding on a per capita basis. Yet, high growth rates
of this population may foreshadow challenges for these
schools as they seek to address this population’s
needs.
Nonmetro household participation
in major U.S. assistance programs, 2003 |
|
Indicator |
Hispanic |
Non-Hispanic
White |
|
Medicaid
Medicare
WIC
Food stamps
Public housing or rental assistance |
21
8
13
14
14 |
11
18
7
7
13 |
|
Source: Compiled by
ERS using the 2002, 2003, and 2004 Current Population
Survey, March Supplement |
Selected economic indicators, nonmetro
counties, 2003 |
|
Characteristic |
Hispanic |
Non-Hispanic
White |
|
Employment rate, ages 16+
Men
Women
Employment sector
Agriculture, mining, construction
Manufacturing
Financial, professional, business
Education, health, public administration
All other sectors
Occupations
Management, professional
Sales and administrative
Production and transportation
Service
Agricultural, construction, maintenance
Income
Median personal income (2003 dollars)
Median household income (2003 dollars)
Percent of poverty-level individuals
Percent homeowners |
79
55
20
23
7
16
34
12
17
29
22
21
$3,500
$31,532
26
58
|
75
66
15
15
11
25
34
30
24
17
15
13
$12,108
$43,778
11
76
|
|
Source: Compiled by
ERS using the 2002, 2003, and 2004 Current Population
Survey, March Supplement |
Nonmetro Hispanics Lag on Economic Indicators
In nonmetro counties, Hispanic men have employment rates
comparable with non-Hispanic White men, but Hispanic women
trail non-Hispanic White women by roughly 10 percentage
points. Nonmetro Hispanics are more likely to work in
lower skilled sectors such as agriculture, construction,
and manufacturing and are less likely to hold occupations
that require college degrees. As a result, average personal
incomes differ substantially between the two groups. Hispanics
are more likely to live in poverty and less likely to
own homes than non-Hispanic Whites.
- While incomes are effective measures of current economic
well-being, homeownership points to long-term economic
security and wealth accumulation. Non-Hispanic Whites
have higher rates of homeownership than all other groups
in both nonmetro and metro areas. Homeownership rates
in nonmetro areas are, however, notably higher than
in metro areas across all racial and ethnic groups,
because of the older median age of the population and
lack of rental housing.
- Prospects for Hispanics in rural America hinge on
the same mechanisms for social and economic mobility
as used by generations of U.S. immigrants. These mechanisms
include acquiring U.S. citizenship, work experience,
English skills, training, and education, as well as
overcoming discrimination and prejudice. Long-term mobility
prospects depend critically on whether the educational
attainment of Hispanic children matches that of their
non-Hispanic peers. In rural America, these circumstances
occur against a backdrop of an aging, mostly White,
population that will retire from the work force in large
numbers in the coming decades. Consequently, the social
and economic adaptation, integration, and mobility of
new rural residents and their children are critical
public policy issues.
Definitions
and sources |
ERS Research on
Hispanics
For more information, go to the ERS Web site’s
briefing
room on race and ethnicity in rural America.
For general information about rural America,visit
the Rural
Emphasis page.
ERS also provides more in-depth analysis of rural
demographic change that focuses on Hispanics. In
particular, see:
- New
Patterns of Hispanic Settlement in Rural America.
Recent settlement has increased the visibility
of Hispanics in many new regions of rural America.
Yet among non-Hispanic Whites within smaller geographic
areas, they became less evenly distributed during
the 1990s, especially in rapidly growing counties.
Hispanic settlement patterns warrant attention
by policymakers because they affect the well-being
of both rural communities and Hispanics themselves.
- Impacts
of Hispanic Population Growth on Rural Wages.
Although earnings generally increased in rural
areas in the 1990s, Hispanic population growth
led to lower wages for at least one segment of
the rural population—workers with a high
school diploma. This report examines the effects
of Hispanic population growth on rural wages and
finds that labor demand favored unskilled and
professional workers in some rural industries.
Who Is Hispanic/Latino?
In this report, “Hispanic” refers to
those individuals who identified themselves as “Spanish,”
of “Hispanic origin,” or “Latino”
on the Decennial Census in 1980, 1990, and 2000
(or the Current Population Surveys of 2002, 2003,
and 2004). Some respondents identify with all three
terms while others may identify with only one. Hispanic
identification is an ethnicity, which is independent
of race. In 2000, roughly 48 percent of Hispanics
identified their race as White, 42 percent as some
other race, and the remaining 10 percent as Black,
Native American, or Asian. Roughly half of all Hispanics
refer to themselves as “Latino.” Note
that Hispanic ethnicity encompasses a wide span
of experience, ranging from families having lived
many generations in the United States to recently
arrived migrants whose experience is emphasized
in this report.
What Is Rural?
The statistics reported in this publication are
based on the metropolitan (metro) and nonmetropolitan
(nonmetro) definitions established by the U.S. Office
of Management and Budget in 2003. Metropolitan areas
contain (1) core counties with one or more central
cities of at least 50,000 residents or with a Census
Bureau-defined urbanized area (and a total metro
area population of 100,000 or more), and (2) fringe
counties that are economically tied to the core
counties. Nonmetro counties are outside the boundaries
of metro areas and have no cities with more than
50,000 residents. The data reported are for nonmetro
and metro areas, but here the terms “rural”
and “urban” are used interchangeably
with “nonmetro” and “metro.”
Although metropolitan and nonmetropolitan definitions
based on the 2000 Census were released in 2003,
the Current Population Survey reports data by the
previous definition only.
Data Sources
This report draws on the research of ERS’s
Resource and Rural Economics Division. Data used
in this analysis come from the 1990 and 2000 Census
and the 2002, 2003, and 2004 Social and Economic
(March) Supplement to the Current Population Survey.
Photos from USDA/OC Photography Center.
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