The methodology developed previously for analyzing the labor market adjustment of legal immigrants is shown to be equally fruitful for analyzing illegal aliens. It is modified to incorporate the effects of illegal status on migration decisions and skill differentials. The data are the North-Houstoun illegal alien sample and the 1970 Census. Using multiple regression analysis, the earnings of illegal aliens rise with schooling and labor market experience, but experience in the U.S. is more important than in the country of origin. Ceteris paribus, Mexican illegal aliens earn about 30 percent less than Canadian/European illegal aliens.
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