Different Country, Same Work: The Income Advantage of Industrial Channeling Among Mexican Immigrants

This study builds on recent work investigating the process of migration channeling between analogous sectors of the Mexican and U.S. labor markets. In this study, the authors take up the question of whether channeling between Mexico and the United States promotes immigrants' economic integration. Drawing on previous research on channeling, and using insights from human capital theory, the authors test the hypothesis that immigrants who are able to use their industry-specific knowledge, skills, and abilities acquired in Mexico within the same industry in the United States achieve higher levels of economic integration. Using a sample of Mexican immigrants from the New Immigrant Survey, we find that industrially channeled immigrants experience a wage premium of over $5,000, on average, in the United States. Our study concludes with a discussion of what industrial channeling means for Mexican immigrants' broader integration into U.S. society.