The Arab and Hispanic transition zone in Detroit
In this section characteristics of Hispanics in the Hispanic/white tracts are compared with: (1) Arabs in the Arab/white tracts, (2) non-Hispanic whites inhabiting Hispanic/white tracts, and (3) Hispanics in the mixed tracts. The eastern suburbs of Dearborn are the reception area for the newest arrival of Arabs while southwestern Detroit is the major area of settlement for Hispanics. Table 3 shows that approximately 60% of Arabs were foreign-born versus only 45% for Hispanics, but of the foreign-born, 67.5% of Hispanics arrived between 1990 and 2000 versus 53.3% of Arabs. Thus, these two contiguous areas have experienced rapid population growth and consequent competition for residential space. Given the relatively recent settlement of Chanel Jewelry much of the Hispanic population, many do not have the capital to move into more expensive owner-occupied housing in the suburbs of Dearborn. However, median household incomes in Hispanic/ white tracts versus Arab/white tracts are quite similar while, the Arab/ white median housing values are between two and three times those of the Hispanic/white tracts, and median rent was $607 for Arabs and $453 for Hispanics. It is puzzling those two groups with similar median family incomes have such differences in the amount of money spent on housing.
Several possibilities exist for explaining how Arabs can afford such expensive housing. First, the discrepancy may result from differences in human capital between Arabs and Hispanics. Human capital refers to the array of skills that an individual brings to the labor market (Becker 1964). A widely used measure of human capital is educational level. Hispanics, particularly Mexicans, have very low levels of educational attainment and enter the labor market with lower skills, which Pandora Jewelry discourages agencies from providing housing loans. Arabs on average have higher levels of educational attainment than many other ethnic groups, which translate into higher earning power. For Arabs, as of 2000, 49.4% of the population over 25 had completed at least a high school education versus 36.5% for Hispanics. High levels of education only translate to higher earning potential in the US labor force if the worker is proficient in English. For Arabs, 78.2% of persons over age 5 spoke English well compared to 66% for Hispanics. Thus, it is not surprising that higher educational levels and fluency in the English language have led to higher percentages of the labor force employed in professions in the respective Arab and Hispanic enclaves. For Arabs this was 22.1% in 2000 versus only 9.6% for Hispanics. Human capital can also be measured by how well ethnic minorities speak the host language given that better employment opportunities exist for job seekers who are fluent in English.
Secondly, regardless of educational levels, Arabs have a much higher rate of business ownership than their Hispanic counterparts and could use their businesses for collateral for purchasing homes. Approximately 20% of Arabs in the labor force were self-employed versus only 3.5% of Hispanics in the Hispanic/white typology. Even though recent migration flows of Arabs to Dearborn have been composed of less skilled individuals, the established ethnic enclave would provide some employment opportunities for new arrivals. Thirdly, Arabs are also more likely to have fled their countries due to political turmoil. Along with human capital, many Arabs left their countries with financial resources and could use them to purchase a home in the suburbs.
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