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Median Income Drops Are Tied to Immigrants
The New York Times ^ | December 22, 2001 | STEVEN GREENHOUSE

Posted on 12/21/2001 9:56:38 PM PST by sarcasm

Median household income dropped between 1989 and 1998 in Queens, Brooklyn, Suffolk, Fairfield and many other counties across the nation that experienced a large influx of immigrants, according to new census data.

The data indicate that even as the economy in the New York region and the nation rebounded after the recession of the early 90's, figures for median household income, adjusted for inflation, failed to climb in many counties because of the increase in low-income immigrant workers.

The new data show that in Brooklyn, Queens and the Bronx — counties with a major increase of immigrants — median income fell sharply. More surprising, though, was the marked income drop in some of the region's wealthiest suburbs, including Nassau, Suffolk and Westchester Counties in New York and Fairfield County in Connecticut.

"Immigrants are jumping immediately into these inner-ring suburbs, which is a change from the past 300 years, when the first generation lived in inner-city neighborhoods," said Robert D. Yaro, executive director of the Regional Plan Association, a civic group that works to improve the economy of the New York region. "This new phenomenon is reducing household incomes in some of the well-to-do suburbs as immigrants move into Bridgeport, Stamford and Norwalk. It's consistent with the national phenomenon of the suburbanization of poverty."


The new data show that median income also fell in many counties in other states attractive to immigrants, including Los Angeles County and Miami-Dade County.

In Queens, according to the data, the median household income fell to $36,480 in 1998 from $44,938 in 1989, a drop of nearly 19 percent, while in Brooklyn it fell by 18 percent, to $27,556 from $33,762.

In Los Angeles County, where there has been a surge of immigrants from Mexico, median income fell in constant dollars to $37,655 in 1998 from $45,962, a decline of 18 percent, according to the census data.

Andrew A. Beveridge, a professor of sociology at Queens College, prepared the analysis that compared the Census Bureau's median income estimates for 1989 and 1998.

Many economists view the median as the best figure for assessing income trends since half the incomes are above it and half below.

Several economists and sociologists, however, argued that the new census data exaggerated the income drop from 1989 to 1998. They said that although median household income might have fallen in many counties, it did not fall as much as the new data suggested.

These economists questioned the new computer model developed by the Census Bureau, and they noted that there was a higher margin of error in analyzing small areas like counties. In addition, critics argued that the way inflation was adjusted might have exaggerated the drop in median income.

Stephen Kagann, chief economist for Gov. George E. Pataki, said the estimated declines were not credible.

"They use an inappropriate starting point, 1989, which was a cyclical peak, thereby ignoring the deep recession that occurred afterwards," Mr. Kagann said. "And they use an inappropriate inflation adjustment that overestimates inflation and thereby underestimates the growth in income."

He said that if the analysis had taken 1993 as its starting point, when New York's economy was near the bottom, the study would have shown a 7.9 percent increase in median household income statewide.

Jared Bernstein, an economist with the liberal Economic Policy Institute, also said that the new census data painted too gloomy a picture. Pointing to another census study, from last March, he noted that median household income for New York State dropped by 7 percent from 1989 to 1998. He added that a 5 percent increase in income in the two boom years, 1999 and 2000, meant a decline of just 2 percent from 1989 to 2000.

Still, he saw economic problems in the state. "In New York, you've had an amplified version of the expanded income gap we've seen nationally," he said. "Folks in the high end — in law, high tech, financial markets — were in a good place to ride the boom. Meanwhile, the huge supply of low-wage workers who were serving these upper-end workers during the boom didn't do nearly as well."

Mr. Beveridge's analysis estimated that median income in Nassau County fell by 14 percent ($61,096 in 1998 from $71,202 in 1989), 16 percent in Suffolk ($54,008 from $64,580), 11 percent in Westchester ($56,865 from $63,629), 12 percent in Fairfield ($57,389 from 65,583), 12 percent in Hudson County ($35,743 from $40,641), 17 percent in Passaic County ($40,923 from $49,421) and by 10 percent in Essex County ($40,595 from $45,375).

While critics derided the numbers, Mr. Beveridge defended them, saying the arrival of immigrants in Bridgeport, Yonkers, Paterson, Hempstead and other communities could have caused a double-digit decrease in income.

In the preponderance of counties nationwide, median household income rose from 1989 to 1998. The counties with declines were often in metropolitan areas with the greatest surges in immigration, including New York, Miami, Los Angeles, San Diego and Washington.

Roger Waldinger, an immigration expert at the University of California at Los Angeles, said the decline in household income could have been fueled by factors having nothing to do with immigration, like the increase in one-member and single- parent households.

Economists have pointed to other reasons for stagnant or declining incomes, including pressure from import competition, the declining power of labor unions, automation that pushes workers out of jobs and poor schools that churn out students who lack job skills.

Dr. Waldinger has conducted studies showing that in many communities, immigration affects income levels and the gap between rich and poor. He said income levels were dragged down by unemployment, not immigrants, who he said usually worked long hours. But many economists say limited skills and inadequate English relegated many immigrants to low-paying jobs


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To: grania
There is also the political angle to consider - Westchester, Nassau and Suffolk counties in New York used to be solidly Republican - guess who they voted for in 2000?
21 posted on 12/22/2001 12:34:37 AM PST by sarcasm
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To: Joseph Warren
Oh, you are a FRINGER ! Just what FR did NOT need more of.IMHO

For the record, I am TOTALLY against ILLEAGAL aliens. I am against ILLEGAL anything ! "VBG"

The meatpacking industry ; however , has ALWAYS used new immigrants . Read " THE JUNGLE " ( of course, written by a Socialist, a lot is exagertaed / lied about, but some things are quite true ! ) , old newspaper articles, and by all means, read up on exactly WHY the PURE FOOD AND DRUG ACTS were so badly needed.

22 posted on 12/22/2001 12:42:05 AM PST by nopardons
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To: sarcasm
guess who they voted for in 2000?

Pat Buckanyone?

23 posted on 12/22/2001 12:46:06 AM PST by PRND21
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To: Joseph Warren
Thanks - I posted an article a couple of weeks ago which indicated that the government was on the lookout for nukes coming into the Port of New York; this seems to confirm the threat.
24 posted on 12/22/2001 12:48:32 AM PST by sarcasm
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To: sarcasm
You are , again, correct !
25 posted on 12/22/2001 12:49:20 AM PST by nopardons
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To: PRND21
Have any other inane comments?
26 posted on 12/22/2001 12:50:01 AM PST by sarcasm
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To: grania
Bridgeport hasn't been a " wealthy " town, since Katherie Hepbur was barely in her teens !

Norwalk was NEVER anything but middle calss !

Stamford has been a "mix " , for decades.

Wanna try to talk about a subject you actually KNOW something about ? : - )

27 posted on 12/22/2001 12:53:20 AM PST by nopardons
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Comment #28 Removed by Moderator

To: sarcasm
Yes, why do you always post from the Left wing Times?
Are you trying to keep Hispanics voting for your party?
29 posted on 12/22/2001 12:55:50 AM PST by PRND21
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To: Joseph Warren;sarcasm
Americans are increasingly subjected to having to morph into 'foreigners' in their own neighborhoods.

Not me - I won't morph into anything.


30 posted on 12/22/2001 12:57:50 AM PST by Brownie74
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To: PRND21
Let's see - the New York Times is a supporter of increased immigration so, if anything, they downplayed this article by publishing it on a Saturday. I don't have the print edition but I imagine that they buried it on page F 32 somewhere.

Do you have anything useful to contribute?

31 posted on 12/22/2001 1:01:53 AM PST by sarcasm
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Comment #32 Removed by Moderator

To: sarcasm
The general pattern is that immigrants in the last 10-15 years make much less than native born Americans, but that immigrants in the country longer than 15 years make MORE income than native born Americans. It's only temporary. Despite educational, language, cultural, and sometimes ethnic differences, most immigrants do very well in two decades. There are, of course, exceptions.
33 posted on 12/22/2001 1:05:42 AM PST by Hagrid
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To: Hagrid
I believe that you are speaking about past patterns of immigration. The influx of the last decade is less well educated than their predecessors and will not do nearly so well. The Federal Reserve has studied this issue and concluded that the current crop of immigrants will be a drag on productivity growth due their lack of education.
34 posted on 12/22/2001 1:12:58 AM PST by sarcasm
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To: Joseph Warren;sarcasm
Have you read Christopher Hitchens' book about Bubba "Noone Left to Lie To"? He goes into much depth about Clinton's and Tyson's shady partnership.
35 posted on 12/22/2001 1:14:50 AM PST by Frances_Marion
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To: Joseph Warren
13 word response, based on a lie.
At least my less than 25 word posts are not lies.
ESL? White people, like myself, are the ones responsible for keeping you and your ilk from gaining credibility.
Remember that, Joey.
36 posted on 12/22/2001 1:17:11 AM PST by PRND21
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Comment #37 Removed by Moderator

Comment #38 Removed by Moderator

To: Joseph Warren
Thanks newbie.
Don't hold a grudge regarding nopardons,
She's made fools of far better than you.
39 posted on 12/22/2001 1:28:02 AM PST by PRND21
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Comment #40 Removed by Moderator


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