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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)

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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 Format: application/pdf
File Function: First version, 2007
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Publisher 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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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
I12 - Health, Education, and Welfare - - Health - - - Health Production
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination

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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. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer, vol. 7(2), pages 133-56.
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  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
    Other versions:
  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. 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. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
  7. 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 120-137 National Bureau of Economic Research, Inc. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
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  9. Eli Berman & Kevin Lang & Erez Siniver, 2000. "Language-Skill Complementarity: Returns to Immigrant Language Acquisition," NBER Working Papers 7737, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Michael A. Shields & Stephen Wheatley Price, 2002. "The English language fluency and occupational success of ethnic minority immigrant men living in English metropolitan areas," Journal of Population Economics, Springer, vol. 15(1), pages 137-160. [Downloadable!] (restricted)
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  11. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, Blackwell Publishing, vol. 51(4), pages 485-503, December. [Downloadable!] (restricted)
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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. 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. [Downloadable!]
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