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The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK

Author

Listed:
  • Miranda, Alfonso

    (CIDE, Mexico City)

  • Zhu, Yu

    (University of Dundee)

Abstract

We investigate the extent to which deficiency at English as measured by English as Additional Language (EAL), contribute to the immigrant-native wage gap for female employees in the UK, controlling for covariates. To deal with the endogeneity of EAL and a substantial problem of self-selection into employment we suggest a 3-step estimator (TSE). The properties of this estimator are investigated in a Monte Carlo simulation study and we show evidence that TSE delivers a consistent and asymptotically normal estimator. We find a large and statistically significant causal effect of EAL on the immigrant-native wage gap for women.

Suggested Citation

  • Miranda, Alfonso & Zhu, Yu, 2013. "The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK," IZA Discussion Papers 7841, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7841
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    References listed on IDEAS

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    1. Miranda, Alfonso & Zhu, Yu, 2013. "English deficiency and the native–immigrant wage gap," Economics Letters, Elsevier, vol. 118(1), pages 38-41.
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    Cited by:

    1. Yao, Yuxin, 2017. "Essays on economics of language and family economics," Other publications TiSEM 0093bc8e-e869-4f87-8ff8-8, Tilburg University, School of Economics and Management.
    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. Morando, Greta, 2014. "Partner ethnicity and ethnic minority socio- economic occupation: evidence from the UK," ISER Working Paper Series 2014-29, Institute for Social and Economic Research.
    4. 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

    endogenous treatment; immigrant-native wage gap; English as Additional Language (EAL); sample selection;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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