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Language and the Earnings of Immigrants

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Author Info
Dustmann, Christian
van Soest, Arthur

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Abstract

A number of studies have established a positive effect of migrants' language proficiency on their productivity. It has been argued that these estimates are upward-biased because of the presence of unobserved heterogeneity. To obtain an accurate estimate of language effects is important since it has potentially important implications for migration policies. Using panel data on immigrants in Germany, we show that in self-reported measures of language proficiency measurement error is substantial. Our results suggest that measurement error is a more serious problem than unobserved heterogeneity, and that Least Squares underestimates the effect of speaking fluency on earnings.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2012.

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Date of creation: Nov 1998
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Handle: RePEc:cpr:ceprdp:2012

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Related research
Keywords: endogeneity; International Migration; language;

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

Cited by:
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  1. Judith K. Hellerstein & David Neumark, 2002. "Ethnicity, Language, and Workplace Segregation: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 9037, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Michael A Shields & Stephen Wheatley Price, . "The English Language Fluency and Occupational Success of Ethnic Minority Immigrant Men Living in English Metropolitan Areas," Discussion Papers in Public Sector Economics 99/4, Department of Economics, University of Leicester. [Downloadable!]
    Other versions:
  3. Xin Meng & Dominique Meurs, 2006. "Intermarriage, Language, and Economic Assimilation Process: A Case Study of France," IZA Discussion Papers 2461, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2007. "Earnings Prospects for People with Migration Background in Germany," ZEW Discussion Papers 07-031 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  5. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "The Labour Market Position of Turkish Immigrants in Germany and the Netherlands: Reason for Migration, Naturalisation and Language Proficiency," IZA Discussion Papers 2683, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Ostrovsky, Yuri, 2008. "Inégalité et instabilité des gains chez les immigrants au Canada," Direction des études analytiques : documents de recherche 2008309f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  7. Robert W. Fairlie & Christopher Woodruff, 2006. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," IZA Discussion Papers 2039, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Ostrovsky, Yuri, 2008. "Earnings Inequality and Earnings Instability of Immigrants in Canada," Analytical Studies Branch Research Paper Series 2008309e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  9. Husted, Leif & Skyt Nielsen, Helena & Rosholm, Michael & Smith, Nina, 2000. "Employment and Wage Assimilation of Male First Generation Immigrants in Denmark," CLS Working Papers 00-1, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
    Other versions:
  10. Subhayu Bandyopadhyay & Howard J. Wall, 2007. "Is There Too Little Immigration?," IZA Discussion Papers 2825, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Alejandra Cattaneo & Rainer Winkelmann, 2003. "Earning Differentials between German and French Speakers in Switzerland," Working Papers 0309, University of Zurich, Socioeconomic Institute, revised Nov 2003. [Downloadable!]
    Other versions:
  12. Subhayu Bandyopadhyay & Howard J. Wall, 2007. "Is there too little immigration? an analysis of temporary skilled migration," Working Papers 2006-062, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
  13. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "Immigration, Integration and the Labour Market: Turkish Immigrants in Germany and the Netherlands," IZA Discussion Papers 2677, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2006. "Immigration, Integration and the Labour Market," CPB Discussion Papers 75, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  15. Kevin Lang & Erez Siniver, 2006. "The Return To English In A Non-English Speaking Country: Russian Immigrants And Native Israelis In Israel," Boston University - Department of Economics - Working Papers Series WP2006-033, Boston University - Department of Economics. [Downloadable!]
    Other versions:
  16. Rob Euwals & Jaco Dagevos & Mérove Gijsberts & Hans Roodenburg, 2007. "The Labour Market Position of Turkish Immigrants in Germany and the Netherlands," CPB Discussion Papers 79, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  17. Robert Fairlie & Christopher Woodruff, 2005. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Working Papers 11527, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, Institute for the Study of Labor (IZA). [Downloadable!]
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