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The Impact of Language Proficiency on Immigrants' Earnings in Spain

Author

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  • Budría, Santiago

    (Universidad Nebrija)

  • Swedberg, Pablo

    (St. Louis University)

Abstract

This article uses micro-data from the Spanish National Immigrant Survey to investigate the impact of Spanish language proficiency on immigrants' earnings. The results, based on Instrumental Variables (IV), point to a substantial earnings return to Spanish proficiency, of approximately 27%. This figure varies largely across educational groups, with high-qualified workers earning a premium of almost 50%. This conspicuous complementarity between formal qualifications and language skills poses a challenge for traditional language training policies, for these typically neglect the immigrants' heterogeneous educational background.

Suggested Citation

  • Budría, Santiago & Swedberg, Pablo, 2012. "The Impact of Language Proficiency on Immigrants' Earnings in Spain," IZA Discussion Papers 6957, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6957
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    Cited by:

    1. Zorlu, Aslan & Hartog, Joop, 2018. "The Impact of Language on Socioeconomic Integration of Immigrants," IZA Discussion Papers 11485, Institute of Labor Economics (IZA).
    2. Yao, Y. & van Ours, J.C., 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," Other publications TiSEM 8df5e344-eb4e-4c90-9429-8, Tilburg University, School of Economics and Management.
    3. De Paola, Maria & Brunello, Giorgio, 2016. "Education as a Tool for the Economic Integration of Migrants," IZA Discussion Papers 9836, Institute of Labor Economics (IZA).
    4. Jan C. van Ours & Yuxin Yao, 2016. "The Wage Penalty of Dialect-Speaking," Tinbergen Institute Discussion Papers 16-091/V, Tinbergen Institute.
    5. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    6. Chiswick, Barry R. & Wang, Zhiling, 2016. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands: A Longitudinal Study," IZA Discussion Papers 9760, Institute of Labor Economics (IZA).
    7. van Ours, Jan C. & Yao, Yuxin, 2016. "The Wage Penalty of Dialect-Speaking," CEPR Discussion Papers 11610, C.E.P.R. Discussion Papers.
    8. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    10. Chiswick, Barry R. & Wang, Zhiling, 2019. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands," GLO Discussion Paper Series 419, Global Labor Organization (GLO).
    11. Yao, Yuxin & van Ours, Jan C., 2015. "Language skills and labor market performance of immigrants in the Netherlands," Labour Economics, Elsevier, vol. 34(C), pages 76-85.

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    More about this item

    Keywords

    instrumental variables; immigration; Spanish language proficiency; earnings;
    All these keywords.

    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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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