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The Causal Effect of Deficiency at English on Female Immigrants’ Labour Market Outcomes in the UK

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  • Alfonso Miranda
  • Yu Zhu

Abstract

Using the first wave of the UK Household Longitudinal Survey, 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, after controlling for age, region of residence, educational attainment and ethnicity. We allow for endogeneity of EAL and correct for bias arising from self-selection into employment using a 3-step estimation procedure. We find very strong evidence of negative selection of EAL into employment. Moreover, we also present evidence of self-selection bias on the wage equation, which if uncorrected, would result in significant underestimation of the causal effect of EAL on the immigrant-native wage gap for women.

Suggested Citation

  • Alfonso Miranda & Yu Zhu, 2013. "The Causal Effect of Deficiency at English on Female Immigrants’ Labour Market Outcomes in the UK," Studies in Economics 1301, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1301
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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:

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    2. Yao, Y. & van Ours, J.C., 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," Discussion Paper 2015-010, Tilburg University, Center for Economic Research.
    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

    English as Additional Language (EAL); immigrant-native wage gap; selectivity bias;
    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

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