MEXICAN AMERICANS ARE CLEARLY A DISADVANTAGED GROUP IN THE LABOR MARKETS OF THE SOUTHWEST. ALTHOUGH SUBSTANTIAL GAINS IN INCOME AND OCCUPATIONAL STATUS TAKE PLACE BETWEEN THE FIRST AND SECOND GENERATIONS OF MEXICAN AMERICANS, LITTLE IMPROVEMENT IS EVIDENCED AFTER THE SECOND GENERATION. AS FURTHER EVIDENCE OF DISADVANTAGEMENT, IT HAS BEEN FOUND THAT WITHIN MOST MAJOR OCCUPATIONAL CATEGORIES, MEXICAN AMERICANS HOLD JOBS WHICH ARE INFERIOR (IN TERMS OF ANNUAL EARNINGS) TO THOSE HELD BY ANGLO AMERICANS. SEVERAL REASONS FOR THE DISADVANTAGED LABOR MARKET EXPERIENCES OF THIS MINORITY GROUP ARE READILY APPARENT--(1) THEY POSSESS LOW JOB QUALIFICATIONS BECAUSE OF LOW LEVEL EDUCATIONAL ATTAINMENT, A DEFINITE LACK OF JOB SKILLS, AND AN INADEQUATE COMMAND OF ENGLISH, (2) MANY OF THESE PEOPLE LIVE IN DECLINING OR ONLY SLOWLY GROWING ECONOMIC AREAS OF THE SOUTHWEST, AND (3) THEY EXPERIENCE DISCRIMINATION WHEN COMPETING IN THE LABOR MARKET. THIS DOCUMENT IS AVAILABLE FROM THE DIVISION OF RESEARCH, GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, UNIVERSITY OF CALIFORNIA, LOS ANGELES, CALIFORNIA 90024, 225 PAGES, FOR $3.00. (ES)