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Computer usage, destination language proficiency and the earnings of natives and immigrants

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  • Barry Chiswick
  • Paul Miller

Abstract

This paper uses the concept of a computer as a public good within the household to model the demand for computers at home. It also investigates the determinants, and consequences for earnings, of computer use. The equations are estimated using data on the native born and immigrants from the 2001 Census of Population and Housing in Australia. The multivariate analyses show that recent arrivals are more likely to use computers than the Australian born. The data suggests a high degree of favorable selection in migration as the level of computer use in Australia is much higher than in most of the countries that Australia’s immigrants come from. Those with a higher permanent income (education, household assets) are more likely to have a computer at home, but there is no effect of transitory income (unemployment). Immigrants who are more proficient in English are also more likely to use a computer. The relation between age and computer use is strongly influenced by cohort effects. Using a computer at home is associated with about 7% and 13% higher earnings for native-born and foreign-born men, respectively. For the immigrants, the effects of schooling and English language proficiency on earnings are greater among those who use a computer at home. This suggests complementarity in the labor market. The use of a computer is shown to be a way the foreign born can increase the international transferability of their pre-immigration skills, a finding that has implications for immigrant assimilation policies. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Barry Chiswick & Paul Miller, 2007. "Computer usage, destination language proficiency and the earnings of natives and immigrants," Review of Economics of the Household, Springer, vol. 5(2), pages 129-157, June.
  • Handle: RePEc:kap:reveho:v:5:y:2007:i:2:p:129-157
    DOI: 10.1007/s11150-007-9007-0
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    Citations

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    Cited by:

    1. Aurélien Portuese, 2012. "Law and economics of the European multilingualism," European Journal of Law and Economics, Springer, vol. 34(2), pages 279-325, October.
    2. Melitz, Jacques & Toubal, Farid, 2014. "Native language, spoken language, translation and trade," Journal of International Economics, Elsevier, vol. 93(2), pages 351-363.
    3. Anzelika Zaiceva & Klaus F. Zimmermann, 2010. "Do Ethnic Minorities "Stretch" Their Time?: Evidence from the UK Time Use Survey," Discussion Papers of DIW Berlin 999, DIW Berlin, German Institute for Economic Research.
    4. Oosterbeek, Hessel & Ponce, Juan, 2011. "The impact of computer use on earnings in a developing country: Evidence from Ecuador," Labour Economics, Elsevier, vol. 18(4), pages 434-440, August.
    5. Chunbei Wang & Le Wang, 2011. "Language Skills and the Earnings Distribution Among Child Immigrants," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 297-322, April.
    6. Adsera, Alicia & Ferrer, Ana, 2014. "The effect of linguistic proximity on the occupational assimilation of immigrant men," CLSSRN working papers clsrn_admin-2014-47, Vancouver School of Economics, revised 24 Oct 2014.
    7. Silke Uebelmesser & Severin Weingarten, 2017. "A Macro-level Analysis of Adult-age Language Learning," CESifo Working Paper Series 6511, CESifo.
    8. Ono, Hiroshi & Zavodny, Madeline, 2007. "Immigrants, English Ability and the Digital Divide," IZA Discussion Papers 3124, Institute of Labor Economics (IZA).
    9. Roman Römisch & Peter Huber & Klaus Nowotny & Ulrike Strauss, 2011. "CENTROPE Regional Development Report. Focus on Spatial Integration," WIFO Studies, WIFO, number 43885, February.
    10. Alberto Ortega & Tyler Ludwig, 2023. "Immigrant English Proficiency, Children’s Educational Performance, and Parental Involvement," Review of Economics of the Household, Springer, vol. 21(2), pages 693-719, June.
    11. Zenón Jiménez-Ridruejo & Carlos Borondo Arribas, 2011. "Wage Assimilation of Immigrants in Spain," Working Papers 11-02, Asociación Española de Economía y Finanzas Internacionales.
    12. repec:edn:sirdps:433 is not listed on IDEAS
    13. Melitz, Jacques, 2012. "A framework for analyzing language and welfare," CEPR Discussion Papers 9091, C.E.P.R. Discussion Papers.
    14. Ana Cardoso & Elsa Fontainha & Chiara Monfardini, 2010. "Children’s and parents’ time use: empirical evidence on investment in human capital in France, Germany and Italy," Review of Economics of the Household, Springer, vol. 8(4), pages 479-504, December.
    15. Marigee Bacolod & Marcos A. Rangel, 2017. "Economic Assimilation and Skill Acquisition: Evidence From the Occupational Sorting of Childhood Immigrants," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 571-602, April.
    16. Alícia Adserà & Ana Ferrer, 2021. "Linguistic Proximity and the Labour Market Performance of Immigrant Men in Canada," LABOUR, CEIS, vol. 35(1), pages 1-23, March.
    17. repec:edn:sirdps:417 is not listed on IDEAS
    18. Andreas Damelang & Sabine Ebensperger & Felix Stumpf, 2021. "Immigrants’ Labour Market Disadvantages Across Western Europe: the Role of Composition and Context," Journal of International Migration and Integration, Springer, vol. 22(4), pages 1525-1550, December.
    19. Chiswick, Barry R., 2008. "The Economics of Language: An Introduction and Overview," IZA Discussion Papers 3568, Institute of Labor Economics (IZA).
    20. Anzelika Zaiceva & Klaus Zimmermann, 2011. "Do ethnic minorities “stretch” their time? UK household evidence on multitasking," Review of Economics of the Household, Springer, vol. 9(2), pages 181-206, June.

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    More about this item

    Keywords

    Computers; Internet; Immigrants; Language; Earnings; D13; J15; J24; J31; J61; F22;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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