Diverging fortunes? Economic well-being of Latinos and African Americans in new rural destinations

• Living in new Latino destinations had almost no impact on African Americans' economic well-being.
• In the 2000s, poverty in new destinations rose more rapidly for Latinos than for African Americans.
• Compared to African Americans, Latinos have higher poverty rates, despite lower unemployment.
• In the 2000s, Latinos' economic fortunes deteriorated more rapidly in new vs. traditional destinations.
• By 2010, Latinos no longer benefited economically from residence in new destinations.

The geographic diffusion of Latinos from immigrant gateways to newly-emerging rural destinations is one of the most significant recent trends in U.S. population redistribution. Yet, few studies have explored how Latinos have fared in new destinations, and even fewer have examined economic implications for other minority workers and their families. We use county-level data from the 1990 and 2000 U.S. Census and the 2006–2010 American Community Survey to compare the changing economic circumstances (e.g., employment and unemployment, poverty, income, and homeownership) of Latinos and African Americans in new Latino boomtowns. We also evaluate the comparative economic trajectories of Latinos in new destinations and established gateways. During the 1990s, new rural destinations provided clear economic benefits to Latinos, even surpassing African Americans on some economic indicators. The 2000s, however, ushered in higher rates of Latino poverty; the economic circumstances of Latinos also deteriorated more rapidly in new vis-à-vis traditional destinations. By 2010, individual and family poverty rates in new destinations were significantly higher among Latinos than African Americans, despite higher labor force participation and lower levels of unemployment. Difference-in-difference models demonstrate that in both the 1990s and 2000s, economic trajectories of African Americans in new Latino destinations largely mirrored those observed in places without large Latino influxes. Any economic benefits for Latinos in new rural destinations thus have not come at the expense of African Americans.