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How valuable are language skills in the Luxembourg labour market?

Author

Listed:
  • Thomas Y. Mathä
  • Giuseppe Pulina
  • Michael Ziegelmeyer

Abstract

This analysis explores the languages skills in the Luxembourg labour market and how they affect employment income, using data on residents and cross-border workers collected through the Household Finance and Consumption Survey (HFCS). On average, workers in the Luxembourg labour market are proficient in more than one language, reflecting the country’s linguistic diversity. Native and foreign-born residents tend to be proficient in more languages than cross-border workers. Employees who master more languages tend to earn higher employment income. Mastering an additional language is associated with a 5% higher hourly wage. In particular, proficiency in English is associated with an 18% higher hourly wage.

Suggested Citation

  • Thomas Y. Mathä & Giuseppe Pulina & Michael Ziegelmeyer, 2022. "How valuable are language skills in the Luxembourg labour market?," BCL Bulletin Analyses, Central Bank of Luxembourg, vol. 2022, pages 85-93.
    • Handle: RePEc:bcl:bclban:bclanalyse20221a3
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    File URL: https://www.bcl.lu/fr/publications/bulletins_bcl/BCLAnalyse/20221A3.pdf
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    More about this item

    Keywords

    Survey; employment; wages; language;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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