Hispanic and Non-Hispanic Wage Differentials: Implications for United States Construction Industry

Abstract

The shortage of skilled construction workers is considered to be one of the greatest challenges facing the United States construction industry. To meet workforce demands, the industry is increasingly relying on Hispanic construction workers. The result has been a strong increase in Hispanic construction workers, especially in the Western and Southern United States where Hispanics already comprise 31 and 24% of the total construction workforce, respectively. Using data from the U.S. Bureau of Labor Statistic’s Current Population Survey (CPS), this study examines relative differences in hourly wages between Hispanic and non-Hispanic construction workers. The finding suggests that Hispanic workers earn less than their non-Hispanic counterparts controlling for experience, occupation, schooling, and geographical location. The implication of the increasing size of the Hispanic construction workforce with respect to industry real wages and education needs is discussed, along with the workforce’s ability to adopt future technologies and workforce strategies.