Household Extension and Earnings Among Foreign-Born Asian and Non-Hispanic White Households

Previous research to understand socioeconomic well-being of immigrants finds the type of living arrangement is significantly correlated with household-level earnings. Present study employing 2009-2011 American Community Survey data explores the above relationship for the six major foreign-born Asian groups and native-born non-Hispanic Whites. The results indicate relative to Whites, household extension is more beneficial for Asian households. Furthermore, householders' labor market advantages as measured by their human capital and English language proficiency are positively associated with nuclear living arrangement. However, diminishing gains in household earnings for the not so recent foreign-born immigrants living in vertically extended households displays a cultural inclination for collective living. Also, there are significant intergroup differences. While Japanese households appear to "rely" the least on household extension to enhance household earnings, the advantage of residing in extended households for the Filipinos and Koreans and especially so for the recent entrants is substantial.