The earnings of self-employed Mexican Americans along the US-Mexico border

We utilize data from the 1990 1% Public Use Microdata Sample to analyze the earnings and occupational status of self-employed Mexican Americans in the five major U.S.-Mexico border metropolitan statistical areas (Brownsville, El Paso, Laredo, and McAllen in Texas, and San Diego, California) relative to those in non-border cities. Our findings suggest that self-employed Mex ican American men earned significantly less in Texas-Mexico border cities t han in other areas on average, while the earnings of self-employed Mexican American women did not significantly vary between border and non-border cit ies. We also find evidence that these earnings differentials may be related to differences in self-employment selection and occupational choice. As su ch, "across the board" policies designed to foster self-employment may not have the desired effect of boosting economic prosperity unless consideratio n is given to the socioeconomic and demographic composition of the region a s well as to the specific occupational sector.