Hispanics are the largest and fastest growing minority
group in the U.S. Until now, their presence has been mostly an urban
phenomenon, as roughly 90 percent of all Hispanics reside in metropolitan
(metro) areas. For the first time, however, the nonmetro Hispanic
population is increasing in number throughout many rural regions
of the Nation. This new demographic pattern is the result of changes
in immigration laws and stricter border crossing enforcement during
the 1990s, which induced many Hispanic immigrants to extend their
stays in the U.S.
Hispanic population growth and settlement have visible economic
and social effects on rural areas and small towns and have garnered
considerable media and public policy attention. Many rural communities
have sought ways to integrate their newest residents. What does
the presence of a growing population of low-income minority residents
mean for the social, economic, and political future of rural America?
Rapid Growth and Geographic Expansion
During the 1990s, nonmetro Hispanic population growth
more than doubled from the previous decade and far outpaced that
of all other nonmetro residents. Hispanics made up less than 5 percent
of nonmetro residents in 1990, but they accounted for over 25 percent
of all nonmetro population growth from 1990 to 2000. Despite their
concentration in the Southwest, half of all nonmetro Hispanics now
live outside the Southwest. Moreover, rural Hispanics in the Midwest,
Southeast, and Northwest, though small in number, are growing far
more rapidly than all other racial and ethnic groups.
During the 1990s, Hispanic settlement became more dispersed
throughout nonmetro America. Over 90 percent (2,155 counties) of
all nonmetro counties experienced some Hispanic population growth,
in sharp contrast to the 710 nonmetro counties (31 percent) that
experienced non-Hispanic population decline during the decade. This
moderate but widespread growth ameliorated some of the chronic population
decline resulting from natural decrease (more deaths than births)
and outmigration from rural counties throughout the Midwest and
Great Plains. In fact, Hispanic population growth in the 1990s prevented
net population loss in over 100 nonmetro counties.
A second and simultaneous pattern of Hispanic population
growth and settlement in the 1990s was one of concentration in a
relatively few predominantly Hispanic nonmetro counties. Counties
with high Hispanic population growth often have manufacturing plants
that employ large numbers of low-skilled workers.
Such industries tend to be less prominent in other nonmetro
counties or in counties with established Hispanic populations. In
addition, sociodemographic characteristics of residents of these
high-growth counties vary greatly, and thus influence personal earnings
and residential settlement. Hispanics in these counties are more
likely to have arrived recently in the United States and to be less
educated, less proficient in English, and undocumented—characteristics
that inhibit economic and social integration—than their non-Hispanic
neighbors or Hispanics elsewhere.
More Rural Hispanics in Low-Wage Jobs
Although Hispanic employment in high-growth nonmetro
counties is still concentrated in agricultural work, recent data
show occupational diversity and mobility. Hispanics in many nonmetro
counties are often employed in large numbers in specific rural industries,
such as textile manufacturing jobs in Georgia and poultry processing
jobs throughout the Southeast. Nonmetro Hispanics make up the majority
of farmworkers, but the share of nonmetro Hispanics employed in
agricultural industries fell from 17 percent in 1990 to about 11
percent in 2000. In contrast, the share of nonmetro Hispanics in
sales, services, and manufacturing occupations increased over the
decade. By 2000, 17 percent of nonmetro Hispanics were employed
in general service jobs, 14 percent in precision production jobs,
11 percent as machine operators, 11 percent as farmworkers, and
10 percent as handlers, equipment cleaners, helpers, and laborers.
The prevalence of rural Hispanics in low-wage jobs is
linked to their educational levels. During the 1990s, wage growth
was highest for college-educated workers and lowest for the least
educated. Rural Hispanics were the only rural ethnic group whose
average level of educational attainment did not change in the 1990s
largely due to historically high rates of immigration during the
period and, thus, a larger share of Hispanics with low educational
levels. By 2000, the share of rural Hispanics without a high school
degree remained at 49 percent, compared with 17 percent for non-Hispanic
Whites and 36 percent for Blacks.
Despite greater participation in service and manufacturing
jobs, rural Hispanic earnings grew only slightly in the 1990s. Annual
earnings of rural Hispanics increased during the 1990s slightly
more rapidly than the earnings of higher paid Whites. In 2000, average
annual earnings were $23,900 for rural non-Hispanic Whites and $18,400
for rural Hispanics. Hourly wages increased for both Hispanics and
Whites, but because wages increased at roughly the same rate, large
differences remained between the two groups.
Lower earnings for some rural Hispanics translate into poverty rates
comparable with those of rural Blacks—and significantly higher
than those of rural non-Hispanic Whites. Although poverty rates
for Hispanics and Blacks declined sharply during the 1990s, one-fourth
of rural Hispanics remained below the poverty line in 2000. In new
nonmetro destinations, Hispanics are more likely to reside in isolated
low-income areas. The integration of Hispanics into the rural economy
presents challenges as well as opportunities to revitalize rural
communities that have been losing population.
Hispanic Population Growth Influences
Rural Employers’ Demand for Labor
The influx of a less educated and less skilled minority
group into rural communities raises questions about how the integration
of this group affects wages and employment. By examining the forces
at work of both labor supply and demand, ERS researchers found that
changes in the magnitude and skill level of labor demanded by employers—caused
by both broad economic trends and Hispanic migration into rural
areas—had varying effects on wages in rural areas during the
1990s.
Due to a growing economy and industrial restructuring in the 1990s,
employers in rural America generally demanded more skilled workers
(with a high school education) than unskilled workers (who have
not completed high school). This increased demand substantially
increased the wages of skilled workers, especially for males. In
a small subset of rural industries—services and manufacturing—however,
changes in labor demand increased the wages of unskilled workers
and, to a lesser extent, professional workers (college-educated),
relative to the wages of skilled workers.
The effects of rural Hispanic population growth on wages were largely
driven by employers’ responses to the new entrants into the
labor force and the subsequent altering of production to match available
skills. ERS results suggest that, overall, some rural service and
manufacturing industries hired unskilled Hispanic labor as substitutes
for skilled labor, but that the effect on wages was dwarfed by the
larger increase in total demand for skilled labor in most rural
industries. Although the availability of large numbers of rural
Hispanic workers changed the nature of jobs demanded in the 1990s,
a greater demand for skilled workers in the rural workforce increased
their wages.
Residential Integration
Recent ERS research examined the extent of residential
integration (the degree to which two population groups are evenly
distributed throughout a given area) between nonmetro Hispanics
and non-Hispanic Whites. To examine patterns of residential settlement
and separation between Hispanics and non-Hispanics, ERS created
a typology of county types based on Hispanic population growth and
composition between 1990 and 2000. Three nonmetro county types were
identified: (1) high-growth Hispanic counties, encompassing
many new rural Hispanic destinations, (2) established Hispanic
counties, and (3) other nonmetro counties. These county
types were compared with each other as well as with metro counties.
ERS then analyzed residential separation between Hispanics and non-Hispanic
Whites at three geographic levels: county level, place level, and
neighborhood level (census tracts).
Regardless of county type, Hispanics became more geographically
integrated among non-Hispanic Whites throughout the Nation over
the course of the past decade. Despite evidence of Whites moving
out of some high-growth Hispanic counties, especially in the Midwest,
the White population in these counties generally grew twice as much
as in other nonmetro counties. The Hispanic population was least
dispersed in other nonmetro counties (accounting for 84 percent
of all nonmetro counties). These counties also experienced the greatest
decline in residential separation, a trend portending significant
ethnic and social change. Rural America, except for nonmetro counties
in the Southwest, has been predominantly non-Hispanic White, without
much consistent contact with foreign-born people from countries
outside of Europe. With increased Hispanic dispersion in nonmetro
areas, interaction between nonmetro Whites and Hispanics is expected
to continue, and rural areas could experience patterns of ethnic
incorporation and diversity more typical of metro areas.
Within counties, however, a reversal of the national trend of Hispanic
integration is found in the degree to which Hispanics and non-Hispanic
Whites live together within town and city boundaries. High-growth
Hispanic counties, which exhibited the lowest average level of residential
separation among all county types in 1990, had the highest average
level in 2000. This trend implies that, on average, Hispanics living
in these 149 counties were about two-thirds more likely to be spatially
isolated from non-Hispanic Whites across municipal boundaries in
2000 than in 1990. The increase in residential separation in these
counties contrasts significantly with that of established Hispanic
counties and other nonmetro counties, both of which remained stable.
Nonmetro Hispanics, like nonmetro Blacks, tended to live in larger
towns and cities between 1970 and 1990, while non-Hispanic Whites
concentrated outside of census-defined places. During the 1990s,
this trend actually increased. Municipal boundaries often represent
economic, social, and fiscal dividing lines between groups and may
heavily influence availability of social services, opportunity for
economic development, property values, and local taxes. As suggested
by the experience of nonmetro Blacks, who migrated to nonmetro towns
and cities after World War II, nonmetro Hispanics may continue to
gravitate to more densely settled locales to seek similar social,
economic, and political resources within incorporated places. Yet
the influx of Hispanics into densely settled areas sometimes occurs
simultaneously with the exodus of non-Hispanic Whites from those
same places.
Several reasons lie behind these residential patterns, one of which
is economic. In high-growth Hispanic counties, non-Hispanic Whites
have significantly higher average incomes than Hispanics, allowing
them to purchase newer, larger houses and properties outside of
towns and small cities that traditionally have been densely settled.
Hispanics in high-growth Hispanic counties, with less time in the
U.S. than other Hispanics and relatively lower earning power, are
more likely to live with or near relatives and friends in more crowded
conditions until they can afford their own housing.
At the neighborhood level (census tract), residential separation
between Hispanics and non-Hispanic Whites also increased during
the 1990s, with dissimilarity indices comparable to those of urban
neighborhoods. High-growth Hispanic counties exhibited the largest
increases in residential separation, as well as the highest absolute
levels, despite higher than average White population growth. For
established and other nonmetro counties, average levels of residential
separation remained unchanged during the decade.
Future Directions
Recent Hispanic residential settlement is a paradox.
Hispanic population growth has helped to stem decades of population
decline in some States. These communities increasingly have new
demographic characteristics (young families with children) and economic
vigor as well as social and cultural diversity. Yet, many rural
communities are unprepared for significant numbers of culturally
different low-paid newcomers who seek inexpensive housing, require
particular social services, and struggle to speak English. While
Hispanics in new destinations often take low-paying jobs, their
presence in the rural labor market may depress local wage rates
in certain industries.
While socioeconomic status often improves for second- and third-generation
Hispanics, rural communities face immediate needs to address the
social, economic, and civic incorporation of recent Hispanic residents.
Such integration is particularly important given that Hispanics
have now become the Nation’s largest and fastest growing minority
group, with new arrivals increasingly populating nonmetro counties.
Many local communities and States have designed programs to help
new residents acquire information about public services and civic
responsibilities. As U.S.-born Hispanic children continue to make
up a significant and growing portion of future employees, taxpayers,
and citizens, integration has become a crucial issue.