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The Impact of Host Language Proficiency on Migrants' Employment Outcomes

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  • Lukas Schmid

Abstract

This paper estimates the economic gains from proficiency in the host country's language on migrants' employment outcomes by exploiting the exogenous placement of refugees to Swiss cantons and a sharp language border dividing German- and French-speaking regions. Using administrative data on African refugees who applied for Swiss asylum between 2008 and 2017, I compare French-speaking refugees assigned to the French-speaking region to French-speaking refugees assigned to the German-speaking region and adjust for common regional differences with outcomes from English-speaking African refugees. The results suggest that language proficiency more than doubles the employment level in the first five years after arrival.

Suggested Citation

  • Lukas Schmid, 2023. "The Impact of Host Language Proficiency on Migrants' Employment Outcomes," American Economic Review: Insights, American Economic Association, vol. 5(4), pages 477-493, December.
    • Handle: RePEc:aea:aerins:v:5:y:2023:i:4:p:477-93
    DOI: 10.1257/aeri.20220386
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    References listed on IDEAS

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    1. Beatrix Eugster & Rafael Lalive & Andreas Steinhauer & Josef Zweimüller, 2017. "Culture, Work Attitudes, and Job Search: Evidence from the Swiss Language Border," Journal of the European Economic Association, European Economic Association, vol. 15(5), pages 1056-1100.
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    Cited by:

    1. Dang, Thang, 2025. "Language training, refugees' healthcare integration, and the next generation's health," Journal of Development Economics, Elsevier, vol. 174(C).
    2. Peter Tóth & Matej Vitáloš, 2025. "Complementarities of occupations and language skills of immigrants in Europe," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(2), pages 211-241, May.
    3. Aydemir, Abdurrahman & Girisken, Ahmet, 2026. "Language Skills and Labor Market Outcomes of Immigrants in Europe," IZA Discussion Papers 18421, IZA Network @ LISER.
    4. Elena Gentili & Fabrizio Mazzonna, 2024. "What drives the substitutability between native and foreign workers? Evidence about the role of language," Economica, London School of Economics and Political Science, vol. 91(361), pages 210-237, January.
    5. Chuard, Caroline & Aerne, Annatina & Eugster, Beatrix & Hodler, Roland, 2025. "Ethnic clustering in schools and early career outcomes," Economics of Education Review, Elsevier, vol. 106(C).
    6. Tumen, Semih & Vlassopoulos, Michael & Wahba, Jackline, 2025. "The Power of Language: Educational and Mental Health Impacts of Language Training for Refugee Children," IZA Discussion Papers 17593, IZA Network @ LISER.
    7. Budría, Santiago & Martínez de Ibarreta, Carlos & Betancourt-Odio, Alejandro, 2025. "Does Host Language Proficiency Among Immigrants Reduce Energy Poverty? Evidence from Australia," IZA Discussion Papers 18312, IZA Network @ LISER.
    8. Daniel Auer & Michaela Slotwinski & Achim Ahrens & Dominik Hangartner & Selina Kurer & Stefanie Kurt & Alois Stutzer, 2024. "Social Assistance and Refugee Crime," CESifo Working Paper Series 11051, CESifo.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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