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The Complementarity of Language and Other Human Capital: Immigrant Earnings in Canada

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Author Info
Chiswick, Barry R. () (University of Illinois, Chicago and IZA, Bonn:)
Miller, Paul W. (University of Western Australia)

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Abstract

This paper analyzes the effects of language practice on earnings among adult male immigrants in Canada using the 1991 Census. Earnings are shown to increase with schooling, pre-immigration experience and duration in Canada, as well as with proficiency in the official languages (English and French). Using selectivity correction techniques, it is shown that there is complementarity between language skills and both schooling and pre-immigration experience. That is, greater proficiency in the official languages enhances the effects on earnings of schooling and pre-immigration labor market experience. Language proficiency and post-migration experience appear to be substitutes, that is, those with greater proficiency have a smaller effect of time in Canada on earnings.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 451.

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Length: 37 pages
Date of creation: Mar 2002
Date of revision:
Handle: RePEc:iza:izadps:dp451

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Related research
Keywords: Immigrants; human capital; language skills; schooling; earnings; Canada;

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
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, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  2. Pendakur, K. & Pendakur, R., 1999. "Speaking in Tongues: Language as both Human Capital and Ethnicity," Discussion Papers dp99-10, Department of Economics, Simon Fraser University.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April. [Downloadable!] (restricted)
  5. Barry R. Chiswick, 2000. "A Model of Immigrant Language Acquisition: Application to Male Immigrants in Canada," University of Chicago - George G. Stigler Center for Study of Economy and State 149, Chicago - Center for Study of Economy and State. [Downloadable!]
  6. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57. [Downloadable!] (restricted)
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  7. Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1066-1099, November. [Downloadable!] (restricted)
  8. Meng, Ronald, 1987. "The Earnings of Canadian Immigrant and Native-Born Males," Applied Economics, Taylor and Francis Journals, vol. 19(8), pages 1107-19, August.
  9. Michael G. Abbott & Charles M. Beach, 1987. "Immigrant Earnings Differentials and Cohort Effects in Canada," Working Papers 705, Queen's University, Department of Economics.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nicolaas Groenewold & Alfred J Hagger & John R Madden, 2002. "The Efficiency of Federal Inter-Regional Transfers Under a Regime of Politically-Maximizing Regional Governments," Economics Discussion / Working Papers 02-03, The University of Western Australia, Department of Economics. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2008. "The Effect of Integration Policies on the Time until Regular Employment of Newly Arrived Immigrants: Evidence from Denmark," IZA Discussion Papers 3849, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Domeland, Dorte, 2007. "Trade and human capital accumulation: evidence from U.S. immigrants," Policy Research Working Paper Series 4144, The World Bank. [Downloadable!]
  5. Albert Saiz & Elena Zoido, 2002. "The returns to speaking a second language," Working Papers 02-16, Federal Reserve Bank of Philadelphia. [Downloadable!]
  6. Barry R. Chiswick, 2000. "A Model of Immigrant Language Acquisition: Application to Male Immigrants in Canada," University of Chicago - George G. Stigler Center for Study of Economy and State 149, Chicago - Center for Study of Economy and State. [Downloadable!]
  7. Chiswick, Barry R., 2008. "The Economics of Language: An Introduction and Overview," IZA Discussion Papers 3568, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Barry R. Chiswick & Paul W. Miller, 2007. "The Critical Period Hypothesis for Language Learning: What the 2000 US Census Says," IZA Discussion Papers 2575, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Joop Hartog & Aslan Zorlu, 2009. "How important is homeland education for refugees’ economic position in The Netherlands?," Journal of Population Economics, Springer, vol. 22(1), pages 219-246, January. [Downloadable!] (restricted)
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