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Language Usage, Participation, Employment and Earnings

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Author Info

  • Alisher Aldashev
  • Johannes Gernandt
  • Stephan L. Thomsen

    () (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

Language ability may not only affect the earnings of the individual, but the participation to participate in the labor market or becoming employed as well. It may also affect selection of people into economic sectors and occupation. In this paper the effects of language ability on earnings are analyzed for foreigners in Germany with joint consideration of up to four types of self-selection. The results show that language profciency signifcantly increases participation and employment probability and affects earnings directly. However, when self-selection into economic sectors and occupation is regarded, the direct effects of language ability on earnings vanish.

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File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2007_Dateien/2007_18.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 07018.

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Length: 26 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:mag:wpaper:07018

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Related research

Keywords: Migration; Language Ability; Multiple Selection; Selection Bias; Germany;

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References

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  1. Aldashev, Alisher & Gernandt, Johannes & Thomsen, Stephan L., 2007. "Earnings Prospects for People with Migration Background in Germany," ZEW Discussion Papers 07-031, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Eli Berman & Kevin Lang & Erez Siniver, 1999. "Language Skill Complementarity: Returns to Immigrant Language Acquisition," Boston University - Institute for Economic Development 96, Boston University, Institute for Economic Development.
  3. Christian Dustmann & Arthur van Soest, 2001. "Language Fluency And Earnings: Estimation With Misclassified Language Indicators," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 663-674, November.
  4. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 101-30, April.
  5. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  6. 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.
  7. Regina T. Riphahn, 2003. "Cohort effects in the educational attainment of second generation immigrants in Germany: An analysis of census data," Journal of Population Economics, Springer, vol. 16(4), pages 711-737, November.
  8. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 485-503, December.
  9. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer, vol. 7(2), pages 133-56.
  10. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  11. 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.
  12. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
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Cited by:
  1. Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2008. "The Immigrant Wage Gap in Germany," ZEW Discussion Papers 08-089, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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