IBC Keynote Speaker

The A.R. Sanchez, J.R. School of Business' IBC Keynote Speaker Series welcomed another renowned guest to Texas A&M International University this past Feb. 6. Dr. Pia Orrenius was the guest lecturer for the night; she presented a crucial piece of her research titled "What is Behind Hispanic Poverty Rates?"

Orrenius is assistant vice president and senior economist at the Federal Reserve Bank of Dallas and adjunct professor at the Hankamer School of Business, Baylor University. Armed with notable credentials, Orrenius earned her B.A. degrees in Economics and Spanish from the University of Illinois at Urbana-Champaign and her Ph.D in economics from the University of California at Los Angeles. Furthermore, she was a senior economist in the Council of Economic Advisers in the Executive Office of the President from 2004-2005 and is a research fellow at The Tower Center for Political Studies at Southern Methodist University. She is also the coauthor of the book "Beside the Golden Door: U.S. Immigration Reform in a New Era of Globalization."

Orrenius' research is focused mostly on immigration, its effects on the economy, the labor market, and immigration policy. Her lecture was from one of the chapters of an upcoming book which tackles the issue of "the economics of inequality, poverty and discrimination in the twenty first century," particularly amongst Hispanics.

Praising Laredo and its "fascinating" culture, Orrenius began her presentation by posing the question "Why is Hispanic well being important?" The answer came with a flood of statistics that show the steady increase of Hispanic population in the United States over the last decade. Orrenius asserted that according to her research, Hispanics will make up 30 percent of the U.S. population by 2050. "The U.S. will be a minority country, that is, all the minorities combined together will make up over half of the population," she stated. This change in population will have direct consequences in the labor force, the market, as well as other policy decisions that will shape U.S. economic policies.

According to U.S. Census Bureau statistics, the Hispanic population increased by 47 percent from 2000-2011, which was 55 percent of the United States' population growth. As of 2010, there are over 51 million Hispanics in the United States. They are the largest minority group in the country, making up 16.7 percent of U.S. population. Not surprisingly, they are mostly concentrated in the South, as well as in the Midwest, but are quickly expanding to many other regions. Although Hispanic populations are increasing at a rapid rate all across the nation, the states with the fastest growing Hispanic populations are South Carolina, Alabama, Tennessee, and Kentucky.

Four out of 10 of Hispanics in the U.S. are foreign born. One distinctive characteristic about them is that they are very young, with one third of them being under the age of 18. Hispanic children account for 24.8 percent of all U.S. children. Due to the high geographic dispersion of Hispanics, combined with their youth, Orrenius calls them "the future of the country." Furthermore, she stated a somewhat shocking fact, "unemployment level is higher among natives than foreign born Hispanics."

Finally, Orrenius outlined some of the most imminent causes of why Hispanics have such high poverty rates. According to their study, the poverty gap could be explained by four main factors that affected wages. The grasp of the English language was the most decisive factor that affected poverty rate among Hispanics, both native and foreign born. The second, was the age of the head of the household, followed by the time that one had been employed, and at last the level of education.

With immigration reform being such a hot topic in Washington right now, Orrenius said that sensible, comprehensive immigration reform is necessary in order to accommodate the needs of the growing immigrant population in this country. She ended her presentation by taking questions from the audience and giving her opinion on the current situation Hispanic immigrants face in the nation.

(Joana Santillana may be reached at joana.santillana@dusty.tamiu.edu)