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Language-Skill Complementarity: Returns to Immigrant Language Acquisition

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Author Info
Eli Berman
Kevin Lang
Erez Siniver

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Abstract

We examine the effect of language acquisition on the growth of immigrants' earnings. We gathered data on recent Soviet immigrants to Israel that include retrospective questions on earnings and language ability on entry into their current job. Language acquisition is found to interact positively with occupation level. Immigrant programmers and computer technicians have a return to tenure about three percentage points higher than that of natives; improved Hebrew language skills account for between 2/3 and 3/4 of that differential wage growth. In contrast, construction workers and gas station attendants have no convergence of wages to those of natives and language acquisition has no discernible effect on their wages. For these less skilled workers the estimated return' to Hebrew proficiency in the cross-section is entirely due to ability bias. This finding may invite a reinterpretation of other studies on the returns to language acquisition for low wage immigrants.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7737.

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Date of creation: Jun 2000
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Handle: RePEc:nbr:nberwo:7737

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Find related papers by JEL classification:
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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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. Carliner, Geoffrey, 1980. "Wages, Earnings and Hours of First, Second, and Third Generation American Males," Economic Inquiry, Oxford University Press, vol. 18(1), pages 87-102, January.
  2. Hayfron, John E, 2001. "Language Training, Language Proficiency and Earnings of Immigrants in Norway," Applied Economics, Taylor and Francis Journals, vol. 33(15), pages 1971-79, December. [Downloadable!] (restricted)
  3. 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)
  4. Weiss, Y. & Gotlibovski, M., 1995. "Immigration, Search and Loss of Kill," Papers 34-95, Tel Aviv.
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  5. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October. [Downloadable!] (restricted)
  6. Dustmann, Christian, 1999. " Temporary Migration, Human Capital, and Language Fluency of Migrants," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(2), pages 297-314, June. [Downloadable!] (restricted)
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  7. LaLonde, Robert J & Topel, Robert H, 1991. "Immigrants in the American Labor Market: Quality, Assimilation, and Distributional Effects," American Economic Review, American Economic Association, vol. 81(2), pages 297-302, May.
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  1. Cohen, Sarit & Eckstein, Zvi, 2002. "Labor Mobility of Immigrants: Training, Experience, Language and Opportunities," IZA Discussion Papers 519, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," Memorandum 20/2002, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  3. Libertad González, 2003. "Nonparametric Bounds on The Returns to Language Skills," Economics Working Papers 714, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  4. Kevin Lang & Erez Siniver, 2006. "The Return To English In A Non-English Speaking Country: Russian Immigrants And Native Israelis In Israel," Boston University - Department of Economics - Working Papers Series WP2006-033, Boston University - Department of Economics. [Downloadable!]
    Other versions:
  5. Edin, Per-Anders & Fredriksson, Peter & Åslund, Olof, 2000. "Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment," Working Paper Series 2000:9, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  6. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Earnings Assimilation of Immigrants in Norway," Memorandum 19/2002, Oslo University, Department of Economics. [Downloadable!]
  7. Barry R. Chiswick & Sarinda Taengnoi, 2007. "Occupational Choice of High Skilled Immigrants in the United States," IZA Discussion Papers 2969, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Borghans,Lex & Weel,Bas,ter, 2001. "Computers, Skills and Wages," Research Memoranda 019, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  9. Alisher Aldashev & Johannes Gernandt & Stephan L. Thomsen, 2007. "Language Usage, Participation, Employment and Earnings," FEMM Working Papers 07018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management. [Downloadable!]
  10. Borghans,Lex & Weel,Bas,ter, 2002. "Do We Need Computer Skills to Use a Computer? Evidence from Britain," Research Memoranda 040, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  11. 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)
    Other versions:
  12. 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!]
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