With data from the U.S. Bureau of the Census 1970 Public Use Samples a
nd 1980 Public Use Microdata Sample tape files for 34 metropolitan sta
tistical areas, the authors examine cross-metropolitan variations in P
uerto Rican poverty, using an instrumental variables regression model.
The analyses highlight the role of residential segregation and econom
ic restructuring on Puerto Rican poverty in 1970 and 1980. Decompositi
on of changes during the 1970s revealed that the primary sources respo
nsible for increased Puerto Rican poverty rates were structural: The e
ffects of segregation on poverty grew stronger during the decade, and
the ability of manufacturing employment and self-employment to attenua
te poverty grew weaker.