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by Cruz C. Torres Professor Emeritus Dept. of RPTS Texas A&M University May 25, 2011 Texas – A Majority/Minority State: Social and Economic Implications 2011 Texas SDC/BIDC Annual Meeting, Austin, TX

By Cruz C. Torres Professor Emeritus Dept. of RPTS Texas A&M University May 25, 2011 Texas – A Majority/Minority State: Social and Economic Implications

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by Cruz C. Torres

Professor Emeritus Dept. of RPTS Texas A&M University May 25, 2011

Texas – A Majority/Minority State: Social and Economic Implications

2011 Texas SDC/BIDC Annual Meeting, Austin, TX

Demographic Trends Affecting the Future

Change in Rates and Sources of Population Growth– migration

Increase in the Non-Anglo Population– fertility

Aging of the Population– death

Projected Rates of Natural Increase for US by Population Groups: 2010-2050

Source: U.S. Census Bureau, Population Division (NP2008-t9)

Projected Rates for Components of US International Migration by Ethnicity: 2010-2050

Texas Population Change

Texas Population Change by Race/Ethnicity: 2000-2010

Race/Ethnicity

2000Census

Population

2010Census

Population

NumericalChange

2000-2010

PercentChange

2000/2010

Percent of Population 2000 2010

NH White 11,074,716 11,397,345 322,629 2.9 53.1 45.3

NH Black 2,421,653 2,886,825 465,172 19.2 11.6 11.5

Hispanic 6,669,666 9,460,921 2,791,255 41.8 32.0 37.6

NH Asian 685,785 1,400,470 714,685 104.2 3.3 5.6

Total 20,851,820 25,145,561 4,293,741 20.6 100.0 100.0

Source: U.S. Census Bureau 2000 and 2010 Census Counts

Population Change by Components of Change in the State, 1990-2000 and 2000-2009

State of Texas

1990-2000

Numerical Change 3,865,485

Natural Increase 49.7

Domestic Migration 30.2

International Migration 20.1

2000-2009

Numerical Change 3,930,484

Natural Increase 54.04

Domestic Migration 21.6

International Migration 23.8

Percent Anglo Population

Less Than 50% Anglo Population

50% or Greater Anglo PopulationSource: 2006 Population Projections, Texas State Data Center,Institute for Demographic and Socioeconomic Research,The University of Texas at San Antonio

2000

2040 2040(2000-2004 Scenario)(0.5 Scenario)

2040(1.0 Scenario)

Texas Counties with 50 Percent or More of Their Total Population That is Angloin 2000 and Projected for 2040 Under Alternative Projection Scenarios

Projected Proportion of Population by Race/Ethnicity in Texas, 2000-2040*

*Using U.S. Census count for 2000 and Texas State Data Center 1.0 population projection scenario for 2010-2040.

53.1

45.1

37.3

30.3

23.9

11.6 11.1 10.39.2

8.0

32.0

39.3

46.5

53.2

59.2

3.34.5

5.97.3

8.9

2000 2010 2020 2030 20400.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0Percent

Anglo Black Hispanic Other

Projected Percent of Net Change Attributable to Each Race/Ethnicity Group in Texas for 2000-2040*

* Using U.S. Census count for 2000 and Texas State Data Center 1.0 population projection scenario for 2040.

Anglo3.9%

Black5.3%

Hispanic78.2%

Other12.6%

Ethnic Diversity of the Population, Householders, and Labor Force in Texas, 2000 and 2040*

* Projections are shown for the 1.0 scenario

53.1%

11.6%32.0%

3.3%

61.4%

11.4% 24.2%

3.0%

58.4%

10.7% 27.5%

3.4%

24.2%7.9%

59.1%

8.8%

29.0%9.0%

52.8%

9.2%

25.2%7.9%

58.7%

8.2%

Anglo Black Hispanic Other

2000 Population

2040 Population

2000 Householders

2040 Householders

2000 Civilian Labor Force

2040 Civilian Labor Force

Major Changes in Population:

Age Composition

Population Pyramids for Anglo and Hispanic Ethnic Groups in Texas, 2000

0

100,

000

200,

000

300,

000

400,

000

500,

000 0

100,

000

200,

000

300,

000

400,

000

500,

000

100 + years95 to 99 years90 to 94 years85 to 89 years80 to 84 years75 to 79 years70 to 74 years65 to 69 years60 to 64 years55 to 59 years50 to 54 years45 to 49 years40 to 44 years35 to 39 years30 to 34 years25 to 29 years20 to 24 years15 to 19 years10 to 14 years

5 to 9 years< 5 years

0

100,

000

200,

000

300,

000

400,

000

500,

000 0

100,

000

200,

000

300,

000

400,

000

500,

000

Male Female Male Female

Anglo HispanicAge

Percent of Texas Population by Age Groupand Ethnicity, 2000

39.541.6

45.0 45.043.1 44.4

47.8

53.0

57.260.2

63.566.4 67.1

72.6

44.041.3

38.0 38.440.5

38.635.3

30.526.7

24.222.4

20.6 20.316.7

< 5

year

s

5 to

9 y

ears

10 to

14

year

s

15 to

19

year

s

20 to

24

year

s

25 to

29

year

s

30 to

34

year

s

35 to

39

year

s

40 to

44

year

s

45 to

49

year

s

50 to

54

year

s

55 to

59

year

s

60 to

64

year

s

65 +

yea

rs0.0

20.0

40.0

60.0

80.0Percent

Anglo Hispanic

Population, Population Change, and Proportion of the Population Less than 18 Years of Age by Race/Ethnicity for Texas, 2000 and 2010

  Change Percent of Population

Race/Ethnicity* 2000 2010 Numeric Percent 2000 2010NH Whites (Anglo) 2,507,147 2,322,661 -184,486 -7.36 42.59 33.83Hispanic (All Races) 2,386,765 3,317,777 931,012 39.01 40.54 48.32NH Black 732,807 810,543 77,736 10.61 12.45 11.81NH Asian 139,226 231,458 92,232 66.25 2.37 3.37

NH "Other" Races 28,962 36,513 7,551 33.05 0.49 0.53NH Two or More Races 91,852 146,872 55,020 59.90 1.56 2.14State of Texas 5,886,759 6,865,824 979,065 16.63 100.00 100.00

Source: U.S. Census 2010, P.L. 94-171 * “Other Race” is comprised of Native American and Alaska Native, Native Hawaiian and Pacific Islander, and “Some Other Race” as per the Census 2000 and Census 2010. Hispanic includes persons of all races. All other race/ethnicity categories shown here are non-Hispanic (e.g., non-Hispanic White, non-Hispanic Black, etc.)

Percent of Texas Population by Age Groupand Ethnicity, 2040*

* Projections are shown for the 1.0 scenario

17.719.3 19.9 20.3 19.8 19.3 19.4 20.5 20.6 21.9

25.3 26.5 27.2

39.8

69.967.8 66.5 65.5 66.0 66.8 66.4

64.362.6

60.6

56.7 55.252.3

37.1

< 5

year

s

5 to

9 y

ears

10 to

14

year

s

15 to

19

year

s

20 to

24

year

s

25 to

29

year

s

30 to

34

year

s

35 to

39

year

s

40 to

44

year

s

45 to

49

year

s

50 to

54

year

s

55 to

59

year

s

60 to

64

year

s

65 +

yea

rs0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0Percent

Anglo Hispanic

Percent 65 Years Old and Older

< 11.9 (n=66)

12.0 - 14.9 (n=70)

15.0 - 19.9 (n=80)

20.0 or more (n=38)

Source: Institute for Demographic and Socioeconomic Research,The University of Texas at San Antonio. Census 2000 Summary File 1.

Percent of Persons 65 Years of Age and Older in Texas Counties, 2000

Percent 65 Years Old and Older

< 11.9 (n=2)

12.0 - 14.9 (n=19)

15.0 - 19.9 (n=79)

20.0 or more (n=154)

Source: Institute for Demographic and Socioeconomic Research,The University of Texas at San Antonio. Texas Population Estimatesand Projections Program, 2006 Projections.

Percent of Persons 65 Years of Age and Older in Texas Counties, 2040*

* Assuming rates of migration equal to 2000-2004

Percent Change from 2000 to 2040 in Selected Age Groups in the Texas Population Under the 1.0

Scenario

88.3

112.0

295.5

<18 years 18 to 24 years 65+ years0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0Percent Change

Education

Educational Attainment for the Texas Population Age 25 and Older

by Race/Ethnicity, 2009

RaceEthnicity

Population Age 25 and

Older

Less than high

school

High school

diploma

Some college or associates

degreeBachelor or more

Non-Hispanic White 8,026,049 8.3 25.3 32.5 33.9Black 1,705,709 15.0 30.4 36.5 18.1Hispanic* 4,876,517 42.5 25.2 21.4 10.9Asian 580,159 14.2 15.4 17.2 53.2Total 15,361,557 20.1 25.4 28.9 25.5________

Source: U.S. Census, American Community Survey, 2009.

*Includes Hispanic persons of all races.

Percent of Persons 25 Years of Age or Older by Level of Educational Attainment and Race/Ethnicity in 2000 and Projected to 2040* Assuming 1990-2000 Trends in Educational Attainment Rates

*Projections are shown for the 1.0 scenario

12.7

25.7

31.6

30.0

24.0

29.9

30.6

15.5

50.7

22.0

18.4

8.9

21.0

16.1

20.6

42.3

2.2

16.6

33.4

47.8

4.3

25.6

40.5

29.6

32.1

25.8

24.1

18.0

13.4

7.6

11.0

68.0

< High School

High School

Some Coll/Assoc

Bachelor's +

< High School

High School

Some Coll/Assoc.

Bachelor's +

< High School

High School

Some Coll/Assoc

Bachelor's +

< High School

High School

Some Coll/Assoc

Bachelor's +

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

Percent

2000 2040

Black

Hispanic

Other

Anglo

Ethnic Diversity of the Population Enrolled in Elementary and Secondary Schools in Texas, 2000 and 2040

Ethnic Diversity of the Population Enrolled in Colleges and Universities in Texas, 2000 and 2040

Future Demands for Specific Programs

Source: The New Texas Challenge: Population Change and the Future of Texas

186.8%

119.9%

48.5%

183%

188.1%

64.7%

101.9%

69.9%

Bilingual/ESL

Economically Disadvantaged

Gifted and Talented

Immigrants

Limited English Proficiency (LEP)

Special Education

Title 1

Career and Technology Education

0% 50% 100% 150% 200%

2000-2040 Percent Change

76.2% Elementary and Secondary Enrollment Growth

Socioeconomic Conditions

Median Household Income in 1999 in Texas by Age of Householder

$0

$10

$20

$30

$40

$50

$60

<25 25-34 35-44 45-54 55-64 65-74 75+

Age of Householder

Thousands

Total and Percent of the Texas Population in Poverty and Median Household Income by Race/Ethnicity, 1999 and 2009

  1999   2009

 Populationin Poverty %

Median Household

Income*  Population in Poverty %

Median Household

Income

Anglo 826,459 7.8 $60,839

1,010,170 9.0 $59,836

Hispanic

1,658,434 25.4 $38,536

2,364,407 26.4 $35,628

Black 525,082 23.4 $37,803

630,479 23.1 $35,438

Asian

65,048 11.9 $64,576

105,186 12.1 $63,692

Other 42,586 13.9 NA 40,000 11.9 NA

Total

3,117,609 15.4 $51,506  

4,150,242 17.2 $50,043

*In 2009 DollarsSource: U.S. Census Bureau, Census 2000 and American Community Survey, 2009

Average Household Income in Texas, 2000-2040*

(in 2000 Dollars)

* Projections are shown for the 1.0 scenario

$54,441

$52,639

$50,903

$49,326

$47,883

2000 2010 2020 2030 2040$30,000

$40,000

$50,000

$60,000

Texas Latino Labor Force

U.S. Latino wages better than Texas Latino wages– 71% of NH white wages

Texas Latino wages– 64% of NH white wages

If current labor force trends continue by 2040 HH income will be $6,000 less than in 2000

Projected Percent of Households in Poverty by Family Type in Texas, 2000 and 2040

* Projections are shown for the 1.0 scenario

11.4

7.5

15.0

26.7

18.9

14.415.4

11.8

17.0

30.0

18.9

16.6

Family Households

Married Couple

Male Householder

Female Householder

Nonfamily Households

Total Households

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Percent in Poverty

2000 2040

State Tax Revenues in Texas Proportioned by Race/Ethnicity in 2000 and Projections to 2040* Assuming 2000 Decile Tax Rates

Ethnic Diversity of Household Income and Consumer Expenditures in Texas, 2000 and 2040*

* Projections are shown for the 1.0 scenario

71.2%

8.2%17.3%

3.3%

66.4%

8.7%21.9%

3.0%

38.2%

7.4%

42.8%

11.6%

31.9%7.1%

51.7%

9.3%

Anglo Black Hispanic Other

2000 AggregateHousehold Income

2040 AggregateHousehold Income

2000 Consumer Expenditures

2040 Consumer Expenditures

Group Disparities

Texas’ ethnic group wages lower than Texas NH white wages

Texas native born Hispanics’ wages higher than immigrant wages in Texas

What does all this mean ?

Pain

or

Gain

Generation Gap: Two Pronged Issue

The Old– Non-Hispanic white populations

diminishing

The Young– Hispanic populations rapidly expanding

Consequences of Aging Population

Greater proportion of population in retirement– Fixed income; dwindling resources– Increase in single head of households– Older more established households- less

consumer needs Greater demand for services

– Baby Boomer Syndrome

Consequences of Aging Population

Increase in health care needs– Age = chronicity

Increase need for service providers– Smaller family units – less available help– Greater geographic mobility less proximity to

family care providers– Greater proportion of elders will be childless

Consequences of Increase in Minority Populations

Labor Workforce– Younger workforce– Less experience

Less educated workforce– Lower skilled occupations = Lower wages– Reduced occupation related benefits

Especially health care benefits– Reduced consumerism – Increased government costs

Minority Populations Consequences

Higher fertility rates– 95% of child growth in past decade=Hispanic– 50.2% of public school children in Texas /Hispanic– Larger size households– Greater demand for single family housing– Greater demands on services

health education

Summary Market Consequences

Reduced tax revenues– Increased proportion of taxpayers in retirement

Only 38% of revenues will from non-Hispanic whites– Increased proportion of taxpayers non-Anglo

Younger less experienced Lower levels of formal education

– Increased proportion of taxpayers in Service occupations = lower wages

– Less disposable income for needs

Implications of Low English Proficiency & Education Attainment

High levels of underemployment– Part-time– Seasonal

High levels of unemployment Low-skilled occupations Low-wage occupations

– Low/no benefits– Low/no security

High sensitivity to economic downturns– Last hired – first fired

Advantages of Population Shifts

Greater demand for services The gray/aging population

English-speaking service providersHousing

The brown/younger populationBilingual service providersEducationAffordable housingYounger households – more needs

High Fertility Good for Economy

More people– More demand for goods & services

Pumps up Social Security– Young workers support aging population

Investing in the future

Hispanics can stimulate business– US Latino buying power $870 billion in 2008

Pump-up weak housing markets– 61% of US Latino net worth invested in

homeownership Replenish an aging labor force Revitalize dying communities

– Look at what it has done for the Catholic Church

The 64 Million $ Question

Is Texas willing to educate this population the way it educated the populations in the past?

Latino Family Portrait

--- mi casa es su casa!

Phone 956-765-5427 e-mail [email protected]