SIMPSON'S PARADOX COMPARISONS OF IMMIGRANTS AND NATIVES Jeffrey S. Passel and Julian L. Simon Simpson's paradox is one of the most of the most counter- intuitive of all analyses of statistical data. The best-known example is that of admission data for male and female graduate students at Berkeley, wherein the aggregate probability of acceptance was lower for women, but the probabilities in most departments were higher for women. Two more neat examples of the paradox should be welcome. 1. Data on Welfare Usage of Immigrants and Natives Consider the data in Table 1, originally drawn from the Urban Institute (Passell and Fix, 1994). The aggregate proportion of immigrants aged 15 and over receiving welfare (defined as food stamps, Supplemental Security Income, Aid to Families with Dependent Children, and General Assistance) declined from 1979 to 1989. But the proportions in the two sub-groups increased. These results seem inconsistent on their face, and caused confusion among critics.1 Table 1 Despite the apparent internal contradiction, however, the data are not at all implausible, and are explained by Simpson's Paradox. Given that the ratio of over-65 persons to 15-65s was 23 to 77 in 1979, and was 15 to 85 in 1989, the observed data are per- fectly consistent with each other, as Figure 1 shows. Figure 1 2. Population Aged 65 and Over in Nursing Homes Table 2 shows data for natives, and for immigrants who entered the U. S. before 1960, who are aged 65 or over and are in "nursing homes" (institutionalized group quarters). The aggregate percentage for immigrants is higher, the the percentages for each age sub-group are lower, for immigrants than for natives, The explanation is that the 85+ age group constitutes 21 percent of the total for immigrants but only 9 percent for natives. Table 2 page 1 articl96 simppara March 15, 1996 ENDNOTE 1. In a pamphlet Behind the Curtain: Julian Simon's Manipu- lation of Immigration Studies (Washington: Federation for American Immigration Reform, 1996), John L. Martin and C. Scipio Garling wrote that the table is necessarily in error and "obviously wrong" (their p. 14), something that "Simon [and presumably the Urban Institute] should have recognized" (pp. 13- 14). They say that "the data belie that conclusion" (p. 13) that the Urban Institute and I arrived at, and that "he disproves his own claims" because of a supposed internal contradiction. page 2 articl96 simppara March 15, 1996