The Causal Effect of Deficiency at English on Female Immigrants’ Labour Market Outcomes in the UK
AbstractUsing 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.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 1301.
Date of creation: Feb 2013
Date of revision:
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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
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Other versions of this item:
- 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 for the Study of Labor (IZA).
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-02 (All new papers)
- NEP-DEM-2013-03-02 (Demographic Economics)
- NEP-EUR-2013-03-02 (Microeconomic European Issues)
- NEP-LMA-2013-03-02 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2013-03-02 (Economics of Human Migration)
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